Mortgage rates have skyrocketed this year, and this is putting tremendous pressure on the real estate market in Thurston County. Inventory is rising, days on the market is increasing, closed sales are falling, and we’re starting to see more price reductions and lower prices. There is still a window of opportunity to sell your home for maximum value, but that window of opportunity is closing.
Let’s take a look at market statistics from last month.
Higher Interest Rates
Interest rates are the biggest factor in the market right now, and are at their highest point since 2008.
Higher interest rates increase the monthly payment and reduce buyer purchasing power.
Months of Supply
Months of supply is a way to measure the available inventory of homes for sale in relation to the current rate of closed sales. Months of supply is the number of homes for sale, divided by the number of closed sales in the past month. For example, if there are 300 homes for sale right now, and 100 closed sales in the past month, then that would be three months of supply (300/100=3).
Three months of supply is what we would see in a balanced real estate market in Thurston County, where neither the buyer or seller have a pricing advantage. When months of supply is greater than three months, that’s a buyer’s market. When months of supply is less than three months, it’s a seller’s market.
Look at the chart below. We are getting closer a balanced market. Since COVID began we have spent a lot of time with less than one month of supply of inventory. Now we have 1.7 months of supply.
Days on the Market
Days on the market tells us how long it takes a property to sell. It is measured from the date of listing until the date that the property changes to a pending status. A balanced real estate market for Thurston County would be an average days on the market of 30-45 days. We’re getting closer to that.
Closed Sales
One way to measure market activity is to look at the number of closed sales. In the chart below, you can see the number of closed sales going back to January 2006. A closed sale is when a buyer and seller complete the purchase and sale transaction and the ownership of the home transfers to the buyer. Closed follow a seasonal pattern. They tend to peak in the summer and decline in the winter.
Median Sale Price
And finally, we get to median sale price. This is different from average sale price, and a lot of people get those confused. The median is the number in the middle of the data set. Half of houses are selling above the median, and half below. We use the median sale price instead of average because the average sale price can be skewed by the mix of high price vs. low price homes sold in a given month, which makes average price too volatile from month to month to be a good indicator. So, in housing we use median price.
The median price peaked in June 2022 at $520,000, and has declined since then. More importantly, the price appreciation trend line (red line below) has been broken, indicating a change in direction for home values.
The window of opportunity is closing
Rising interest rates are putting downward pressure on home values. Prices are still very close to all-time highs. You still have a window of opportunity to sell your home for maximum value, but that window of opportunity is closing.
Take Advantage of This Historic Opportunity
Who knows how long this window of opportunity will stay open? If you’re thinking about selling your home anytime soon, you should act now.
We offer a free consultation and analysis to help you determine whether selling your home is the right move for you. This is more than just a “free market analysis” that any real estate agent can provide. We take a consultative approach, and we see ourselves as trusted advisors, not salespeople. We will go deeper to help you identify and evaluate your options, and bring up things to consider that you might not have thought about already.
Our free consultation and analysis includes:
Listen to your goals and needs (we listen more than we talk)
Help you figure out whether selling now is right for you
Prepare you by setting realistic expectations
Make suggestions for property improvements, staging, and marketing
Tell you how much your home is worth and how much cash you’ll get when you sell
These are the typical costs to sell your home in Thurston County, WA. You don’t pay out-of-pocket for these costs, they are deducted from your net proceeds at closing.
Escrow fees, which are usually split 50/50 by buyer and seller
Title insurance policy
Property tax, which is prorated as of the date of closing
Mortgage payoff
Buyer closing costs that the seller has agreed to pay
HOA dues and transfer fees
Real estate commissions
Miscellaneous document and recording fees
Out-of-pocket costs
You may have some out-of-pocket costs as well, depending on the situation. Out-of-pocket costs usually include
Septic pumping and Time of Transfer from the county
Repairs that you have agreed to perform
Net Proceeds Estimate
Here is an example of a Net Proceeds Estimate. The Net Proceeds Estimate is an estimate of how much money you will walk away from the closing table with in the sale of a $500,000 home in Thurston County. It shows the estimated costs you can expect to pay.
This example does not include a mortgage amount. If there was a mortgage on the property, we would include the mortgage payoff. For example, if this property had a $250,000 outstanding mortgage balance, we would subtract that from $461,469.45 to arrive at an estimated net proceeds of $211,469.45.
Keep in mind that there is no set commission rate. Commission is negotiable at the time that the property is listed.
Get an accurate estimate of your home’s value
We offer a free consultation and analysis to help you determine whether selling your home is the right move for you. This is more than just a “free market analysis” that any real estate agent can provide. We take a consultative approach, and we see ourselves as trusted advisors, not salespeople. We will go deeper to help you identify and evaluate your options, and bring up things to consider that you might not have thought about already.
Our free consultation and analysis includes:
Listen to your goals and needs (we listen more than we talk)
Help you figure out whether selling now is right for you
Prepare you by setting realistic expectations
Make suggestions for property improvements, staging, and marketing
Tell you how much your home is worth and how much cash you’ll get when you sell
In Thurston County, WA pending home sales follow a seasonal pattern. They begin increasing in March and start slowing down in October. The time period from March to October is the busy season, and during the busy season there are a lot of potential buyers in the market.
But there are also a lot of homes for sale during the busy season, because most sellers are putting their home on the market during that same time period. So even though there are more buyers looking between March and October, there is also a lot more competition from other sellers.
But you can also sell your home during the off-season, which is from November through February. There are fewer homes for sale during the off-season, which means there is less competition from other sellers. Some sellers will take their home off the market over the holidays, and others will wait to list their home until the spring. Of course, there are also fewer buyers during the off-season but there will still be buyers out there looking.
Selling during the off-season can be a good strategy when there are no other houses for sale in a desirable area, or neighborhood, or school district. If listing your home for sale fills a need in the market and provides an opportunity where there are no other alternatives, then selling during the off-season can be very successful. There will always be people who need to buy a home right now, even during the off-season.
Get an accurate estimate of your home’s value
We offer a free consultation and analysis to help you determine whether selling your home is the right move for you. This is more than just a “free market analysis” that any real estate agent can provide. We take a consultative approach, and we see ourselves as trusted advisors, not salespeople. We will go deeper to help you identify and evaluate your options, and bring up things to consider that you might not have thought about already.
Our free consultation and analysis includes:
Listen to your goals and needs (we listen more than we talk)
Help you figure out whether selling now is right for you
Prepare you by setting realistic expectations
Make suggestions for property improvements, staging, and marketing
Tell you how much your home is worth and how much cash you’ll get when you sell
The Zestimate is Zillow’s automated home valuation tool. When you go to zillow.com and look up your home, you will see that Zillow provides a Zestimate of your home’s value. It is important to note that the Zestimate is completely automated based on a computer algorithm, and there are no humans involved in determining the Zestimate for your home.
To calculate the Zestimate, Zillow uses public records data such as
Home characteristics
On-market data
Off-market data
Market trends
How accurate is the Zestimate?
Let’s take a look at what Zillow says about the accuracy of the Zestimate, from the Zillow FAQ.
I must point out here that Zillow is discussing their error rate in terms of the “median error rate”. Median means the number that is in the middle of the data set. It is not an average. So when they say that the median error rate for off-market homes is 6.9%, that means that half of the Zestimates for off-market homes will have an error rate less than 6.9% and half of them will have an error rate that is greater than 6.9%
Significant difference in Zestimate accuracy between on-market homes and off-market homes
Notice where Zillow points out the difference in accuracy between on-market and off-market homes? An on-market home is a home that has been listed for sale, and an off-market home is a home that is not currently for sale.
What do you think the crucial difference is between an on-market home vs. an off-market home?
The main difference is that with most on-market homes, a real estate broker has analyzed the home’s characteristics and compared it to recent sales of similar homes to arrive at an estimated market value. The real estate broker helped the seller choose an appropriate asking price for the property. When a property gets listed by a real estate broker onto the Multiple Listing Service (MLS), Zillow gets that data and updates the Zestimate for the property.
There is no substitute for human expertise and intuition
Another way to look at it is that the real estate broker has provided a human input that Zillow then uses to make the Zestimate more accurate. That human input, in the form of the expertise and intuition of the real estate broker, is what makes the error rate so much lower for on-market properties when compared to off-market properties.
If you follow the Zestimate of your home or the homes around you over time, you’ll notice how the Zestimate seems to magically change for a particular property when it gets listed for sale in the MLS. That’s because the real estate broker helped the seller select an appropriate asking price for current market conditions, the price was input into the MLS at the time of listing, Zillow received that price and other data through a data feed shortly thereafter, and then Zillow’s “neural network-based model” incorporated that asking price into the Zestimate.
You will also see that the change in Zestimate is often quite drastic after a property is listed. That tells us that not only is Zillow incorporating the asking price into the Zestimate, but the amount that the Zestimate changes also tells us that Zillow places great importance on the MLS asking price in comparison to its other data sources. Otherwise, the Zestimate wouldn’t change much after a property is listed.
In other words, the MLS asking price (which was arrived at through human expertise and intuition) appears to be more heavily weighted in Zillow’s model than the other non-human sources of data are.
Example: Seattle metropolitan area
As an example, we will take the data breakdown that Zillow provides for the Seattle metro area. Even though we are farther south here in Thurston County, the Seattle metro area is the closest area where Zillow provides a breakdown of the accuracy.
The above table illustrates Zillow’s data about the accuracy of the Zestimate. It shows the percentage of on-market and off-market properties that are within each margin of error category.
A real estate broker will provide a more accurate value estimate than a Zestimate will
They key takeaway from this information is that in order to get an accurate estimate of your home’s value, you need the expertise of a real estate broker. The Zestimate will get you into the “ballpark” of your home’s value, but it is not going to be accurate enough to determine an asking price for your home.
So if you want to know whether your home is worth $400,000 or closer to $500,000, the Zestimate can help you with that.
But when you are going to sell your home you need human expertise and intuition in order to determine an accurate asking price for the home. The best way is to get a market analysis from a real estate broker.
Get an accurate estimate of your home’s value
We offer a free consultation and analysis to help you determine whether selling your home is the right move for you. This is more than just a “free market analysis” that any real estate agent can provide. We take a consultative approach, and we see ourselves as trusted advisors, not salespeople. We will go deeper to help you identify and evaluate your options, and bring up things to consider that you might not have thought about already.
Our free consultation and analysis includes:
Listen to your goals and needs (we listen more than we talk)
Help you figure out whether selling now is right for you
Prepare you by setting realistic expectations
Make suggestions for property improvements, staging, and marketing
Tell you how much your home is worth and how much cash you’ll get when you sell
We’re still in a seller’s market, but the market is changing
Mortgage rates have skyrocketed to 6%, with further increases projected. As a result, the real estate market in Thurston County, WA is changing. Inventory is rising, days on the market is increasing, and we’re starting to see price reductions on some listings. However, with median days on the market at 5 days and less than one month’s worth of active inventory, the median home price is still increasing and we are still in the midst of a seller’s market. There is still a window of opportunity to sell your home for maximum value, but that window of opportunity is closing.
Let’s take a look at market statistics from last month.
Months of supply
Months of supply is a way to measure the available inventory of homes for sale in relation to the current rate of closed sales. Months of supply is the number of homes for sale, divided by the number of closed sales in the past month. For example, if there are 300 homes for sale right now, and 100 closed sales in the past month, then that would be three months of supply (300/100=3).
Three months of supply is what we would see in a balanced real estate market in Thurston County, where neither the buyer or seller have a pricing advantage. When months of supply is greater than three months, that’s a buyer’s market. When months of supply is less than three months, it’s a seller’s market.
Look at the chart below. We are nowhere near a balanced market. Months of supply in April 2022 was 0.78! This means that homes are selling almost as fast as they become available.
This indicator explains why there are still bidding wars, offers in the first couple of days, and skyrocketing prices. We have an extreme supply/demand imbalance. There are not enough homes for sale to keep up with buyer demand. We need more supply!
Days on the Market
Days on the market is another indicator that shows that we are in an extreme seller’s market. Currently, the median days on the market is only five days. A lot of houses are selling within the first week of the listing. This is much lower than during the 2006-2007 peak, when market time was between 30 days and 40 days. In a balanced real estate market in Thurston County, average market time would be around 45-55 days.
This means that homes are being sold almost as quickly as they are being listed. And looking at the green circle on the right of the chart below, we see that days on the market has flatlined since early 2021 and hasn’t come up at all. This is something I’m going to keep my eye on, days on the market is a good early indicator to watch for changes in the market.
Take Advantage of This Historic Opportunity
Who knows how long this window of opportunity will stay open? If you’re thinking about selling your home anytime soon, you should act now.
We offer a free consultation and analysis to help you determine whether selling your home is the right move for you. This is more than just a “free market analysis” that any real estate agent can provide. We take a consultative approach, and we see ourselves as trusted advisors, not salespeople. We will go deeper to help you identify and evaluate your options, and bring up things to consider that you might not have thought about already.
Our free consultation and analysis includes:
Listen to your goals and needs (we listen more than we talk)
Help you figure out whether selling now is right for you
Prepare you by setting realistic expectations
Make suggestions for property improvements, staging, and marketing
Tell you how much your home is worth and how much cash you’ll get when you sell
According to a recent Realtor.com survey, 42% of sellers made repairs or updates to their homes before listing for sale.
Today we’re going to talk about some inexpensive home improvements you can do before you put your house on the market.
Before we start, I just want to point out that market conditions have a huge impact on how far you need to go in making improvements. When you’re in a seller’s market like we have today (Greatest Seller’s Market in History), the seller might not have to put as much effort and money into pre-listing improvements. But when we’re in a buyer’s market like the one we had from 2009-2013, the seller will need to go the extra mile to make their house attractive to potential buyers.
When you’re getting your house ready for sale, there are two areas where you should focus:
Major issues that can prevent the house from qualifying for mortgage financing
Minor DIY cosmetic upgrades that will make your house more attractive to buyers
Major Issues that can prevent your home from financing
Most people understand that when a buyer buys a house, that buyer has to qualify for financing. They have to have the right debt to income ratios, credit scores, and must be able to afford the monthly payments.
People often forget that the house also must meet certain minimum requirements in order to qualify for financing. Both the buyer, and the property, must meet the lender’s requirements.
Requirements vary depending on the type of loan. Conventional mortgages usually have the easiest requirements. Government backed mortgages such as FHA, VA, or USDA loans impose some additional requirements, but most properties that are in decent condition will have no problem meeting these requirements.
The home must be safe, sound, and structurally secure
In general the home must be safe, sound, and structurally secure. Oftentimes this is open to some interpretation. The appraiser is the person making this determination, and there is some subjectivity involved here. One appraiser might call out a problem that another appraiser will not.
Here are some of the major issues that can prevent your home from financing:
Roof leaks or is damaged
Active plumbing leaks
Broken or missing heating fixtures
Broken or missing dishwasher or range
Missing water heater strapping
Missing floor coverings
If you are getting ready to sell your home, you should consider taking care of any of the above items before you move forward. Otherwise you run the risk of having something get called out an appraisal that needs to be fixed prior to closing, which will delay the closing date while you scramble to get a contractor in to fix it.
Minor DIY cosmetic updates for maximum value
There are some easy do-it-yourself cosmetic updates that can really enhance the appeal of your home and help you maximize the value when you sell. Most people will be able to do these on their own. Just remember that there is a YouTube video for everything. If you don’t know how to do something on this list, you should be able to find plenty of tutorials on YouTube that walk you through it. Just remember that not everyone on YouTube knows what they are talking about, so my advice is to cross reference multiple videos to make sure you’ve got the full picture.
Here are the DIY cosmetic updates that will help you maximize your “bang for the buck”:
General cleaning – walls, floors, kitchens, bathrooms
Clean vent fans
Replace burned out light bulbs
Replace older faucets, door knobs, or trim
Replace outdated lighting fixtures
Clean windows and screens
Have carpets cleaned, especially if you have indoor pets
Make sure that carbon monoxide detectors are installed
Landscaping improvements to enhance curb appeal
It is also a good idea to freshen up the landscaping. This will enhance curb appeal and help make a great first impression.
Plant lots of colorful flowers, in planters or in pots, to activate the buyer’s senses and really make things pop
Mow, edge, and trim, and keep it that way
Pull weeds
Install fresh mulch
Rake leaves
Clean porches, decks, and patios
Clean moss and debris from the roof
Get expert advice on preparing for sale
Are you thinking about selling your home, and want some advice on how to prepare? Get in touch with us! We offer a free consultation and analysis for potential sellers. Our free consultation and analysis includes:
Listen to your goals and needs (we listen more than we talk)
Help you figure out whether selling now is right for you
Prepare you by setting realistic expectations
Make suggestions for property improvements, staging, and marketing
Tell you how much your home is worth and how much cash you’ll get when you sell
I’ve been in real estate in Thurston and Lewis County for 17 years, and I’ve never seen a market like this one
We’re in the middle of the Greatest Seller’s Market in History.
Lowest inventory on record
Buyers are in a frenzy
Many homes are selling within the first week
Multiple offers and bidding wars
Prices are skyrocketing
In the post, I’ll prove to you that there has never been a better time to sell your home and that the window of opportunity to sell your home for maximum price may be closing.
Closed Sales
One way to measure market activity is to look at the number of closed sales. In the chart below, you can see the number of closed sales going back to January 2006. A closed sale is when a buyer and seller complete the purchase and sale transaction and the ownership of the home transfers to the buyer.
Notice the two green circles in the chart below? The one on the left represents the peak of the housing bubble in the mid-2000’s. The one on the right represents the present day. Each data point represents the prior 12 months of activity.
You can see how closed sales topped out in the 5500 per year range back in 2006-2007, then fell down to around 3000 per year as the housing bubble burst. Then we started recovering in 2012 and sales steadily increased and then plateaued in 2018-2019. There was a dip in sales when COVID hit in spring 2020, but since then closed sales have really taken off. Now we’re around 6500 sales per year, which is an amazing amount of closed sales for real estate in Thurston County.
Months of supply
Months of supply is a way to measure the available inventory of homes for sale in relation to the current rate of closed sales. Months of supply is the number of homes for sale, divided by the number of closed sales in the past month. For example, if there are 300 homes for sale right now, and 100 closed sales in the past month, then that would be three months of supply (300/100=3).
Three months of supply is what we would see in a balanced real estate market in Thurston County, where neither the buyer or seller have a pricing advantage. When months of supply is greater than three months, that’s a buyer’s market. When months of supply is less than three months, it’s a seller’s market.
Look at the chart below. We are nowhere near a balanced market. Months of supply in April 2022 was 0.67! This means that homes are selling almost as fast as they become available.
This indicator explains why there are bidding wars, offers in the first couple of days, and skyrocketing prices. We have an extreme supply/demand imbalance. There are not enough homes for sale to keep up with buyer demand. We need more supply! And it has only become more imbalanced in the past year.
Days on the Market
Days on the market is another indicator that shows that we are in an extreme seller’s market. Currently, the median days on the market is only five days. A lot of houses are selling within the first week of the listing. This is much lower than during the 2006-2007 peak, when market time was between 30 days and 40 days. In a balanced real estate market in Thurston County, average market time would be around 45-55 days.
This means that homes are being sold almost as quickly as they are being listed. And looking at the green circle on the right of the chart below, we see that days on the market has flatlined since early 2021 and hasn’t come up at all. This is something I’m going to keep my eye on, days on the market is a good early indicator to watch for changes in the market.
Median Sale Price
And finally, we get to median sale price. This is different from average sale price, and a lot of people get those confused. The median is the number in the middle of the data set. Half of houses are selling above the median, and half below. We use the median sale price instead of average because the average sale price can be skewed by the mix of high price vs. low price homes sold in a given month, which makes average price too volatile from month to month to be a good indicator. So, in housing we use median price.
The median sale price in Thurston County in April 2022 was $510,000! I never thought I’d see median prices this high in Thurston County. Ever.
On the chart below you can see the previous real estate peak in 2007 when the median sale price topped out a little over $250,000. It then fell quite a bit until 2012 when it bottomed out and then started recovering.
When I look at this chart, I notice two distinct trendlines in the median sale price. The green line represents our baseline recovery trend since 2014. But then, in early 2020 when COVID hit, prices started an even steeper climb. The red line shows that price appreciation really accelerated in early 2020. That’s a very steep slope for real estate prices, and the change in slope from the green line to the red line is proof that prices are skyrocketing.
The Window of Opportunity is Closing
This is a historic window of opportunity for you to sell you home for maximum value. How long will it last? With interest rates rising and predicted to continue rising, the window of opportunity may be closing.
I don’t know the answer to that question, but here’s what I do know. This is not 2006-2008, when the market boom was fueled by subprime loans and loose lending standards. This time around it is more about lack of supply. The simple fact is that there are a lot more buyers who want to buy a home than there are sellers who want to sell. A primary contributing factor is the anti-growth mindset of local policymakers, who always pay lip service to affordable housing, while at the same time continually enacting more restrictions that reduce density and make it harder and more expensive to build enough homes to meet demand.
An important thing to keep an eye on here is interest rates. Interest rates have been at historic lows for quite a while, and low interest rates are partially responsible for skyrocketing prices. The Federal Reserve just increased interest rates by half a percent, the largest increase since the year 2000. Experts are predicting that the Federal Reserve will increase mortgage rates seven times in 2022.
When the Fed raises interest rates, mortgage rates generally follow. And higher mortgage rates increase the monthly payment a buyer has to pay, which reduces buyer purchasing power.
Right now there are a lot of buyers who are stretching the limits of their affordability. A buyer that can barely afford a $500,000 house right now will not be able buy that same $500,000 house after seven interest rate hikes.
This will have an impact on the Greatest Seller’s Market in History. The question is, how much? A few buyers will have to drop out of the market, but will it be enough to make a meaningful dent in this huge level of demand we are seeing?
Earn Tax Free Income with the Capital Gains Tax Exclusion
Did I just say “tax free income”? You bet I did! Direct from the IRS website:
If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse. https://www.irs.gov/taxtopics/tc701
If you have lived in your home as your primary residence for at least two of the past five years, then you can qualify for one of the greatest wealth building tools that is available to the American middle class: The Capital Gains Tax Exclusion.
I’m surprised by how many sellers I come across who don’t know about this. How many other opportunities will you get in life to pocket hundreds of thousands of dollars in gains free from income taxes? Not very many!
But here’s the thing about the capital gains tax exclusion. It exists at the mercy of Congress. Congress created it, and they can take it away. Every once in a while someone in Congress will start making noise about eliminating this tax exclusion in order to help pay for our incredibly bloated federal budget. The threat has never been very serious, but times are changing. The capital gains tax exclusion is a juicy and tempting target for raising revenue, and I don’t think they will keep it in place forever. Who know when this window of opportunity will close?
Take Advantage of This Historic Opportunity
Who knows how long this window of opportunity will stay open? If you’re thinking about selling your home anytime soon, you should act now.
We offer a free consultation and analysis to help you determine whether selling your home is the right move for you. This is more than just a “free market analysis” that any real estate agent can provide. We take a consultative approach, and we see ourselves as trusted advisors, not salespeople. We will go deeper to help you identify and evaluate your options, and bring up things to consider that you might not have thought about already.
Our free consultation and analysis includes:
Listen to your goals and needs (we listen more than we talk)
Help you figure out whether selling now is right for you
Prepare you by setting realistic expectations
Make suggestions for property improvements, staging, and marketing
Tell you how much your home is worth and how much cash you’ll get when you sell
You have your house on the market. You’re minding your own business when suddenly, you get a phone call. Someone wants to come show your house to a potential buyer, but your home is a little (or a lot) messy. What should you do?
Here’s is a 25 step checklist to help you make sure that your home is presentable and will create the right impression for your potential buyer.
Before you get the call, set yourself up with a plan for success
• Have a laundry basket or two handy. You can use it gather and remove clutter, and take it in your car with you as you leave. • Have a set of “show towels” for the kitchen and bathroom that you only bring out for a showing • Keep the show towels and cleaning supplies in the laundry basket. When you get a showing, take the laundry basket from room to room. Gather clutter and clothes and put them in the basket as you tidy up. • Plan on leaving during the showing, and take the pets with you as you go • Keep a short list of places for you to go during the showing… shopping, coffee, running errands, etc. • Lock up your cash, guns, jewelry, and medications • Always lock your doors on the way out
If you only have 30 minutes or less to prepare for a showing
• Take the laundry basket from room to room and pick up the clutter • Make the beds, smooth the bedspreads, and fluff the pillows • Wipe the counters and sinks with a damp cloth • Put dirty dishes in the dishwasher • Put out the “show towels” in the kitchen and bathrooms • Put toiletries and shower items away • Close the toilet lids • Close the clothes hampers or cover them with a cloth • Close closet doors • Stuff your bills and personal papers in a drawer or take them with you • Empty all of the garbage cans • Turn on all of the lights • Open curtains and blinds and let in some light • Freshen the air, if needed
If you have more than 30 minutes to prepare for a showing
Do everything in the list above, and: • Vacuum the carpets and rugs • Sweep the floors • Clean the toilet and shower • Sweep the front porch
With a plan like this, and a little advance notice on your showing appointments, you don’t have to worry about keeping your house squeaky clean all the time. It’s your home… live in it as you wish. Have a plan for getting the house ready for showings and set your self up for success. When the call comes, execute the plan. It’s a lot of hard work in a short period of time, but it is crucial that your home looks great for potential buyers.
Washington law says that when you sell your home, you must fill out a Seller Disclosure Statement (also known as Form 17). You must tell the buyer any problems with the property that you know about.
Do I have to do a disclosure statement when I sell my home?
Probably. Almost every real estate seller in Washington state has to fill out a Seller Disclosure Statement, but there are some exceptions. If you fall into one of these categories, then you don’t have to do it. The exemptions listed below can be found in RCW 64.06.010:
If the transfer is a foreclosure or deed-in-lieu of foreclosure, meaning that the transfer is from the borrower to the borrower’s lender. This exemption doesn’t apply when you buy a foreclosure property from a bank, or sell a property that you bought at a foreclosure auction.
Gift or transfer between family members, such as a parent, child, spouse, domestic partner, etc.
Transfers between spouses and domestic partners in connection with a divorce or dissolution
Transfers where the buyer had an ownership interest in the property in the past two years
Transfers that are less than fee simple and don’t include full ownership rights in the property (such as a life estate or lease)
Transfers made by the personal representative of an estate or a bankruptcy trustee
When the buyer has waived the right to receive the Seller Disclosure Statement
What do I have to disclose?
You have to disclose any material facts that you are aware of that affect the property. A material fact is something that affects the title (ownership) of the property or the physical condition. Some common examples include:
Leaky roof
Electrical issues
Problems with the septic system
Generally you don’t need to disclose things that are not material facts, such as:
Whether a death, murder, or suicide occurred in the house
Political or religious activity
Whether there are sex offenders nearby
You also aren’t liable for things that you don’t have actual knowledge of.
Tips for filling out the disclosure statement
The “Don’t know” box is your friend! If you’re not sure about an answer, it’s better to be honest about that then to make a bad guess.
Be honest. Don’t downplay problems.
Imagine that you are buying the property, and ask which things you would want to know about. When in doubt, disclose it.
Attach explanations. You can attach additional pages to the Seller Disclosure Statement. These can be explanations of a particular issue, details of how it was repaired, or even a copy of a repair invoice.
When in doubt, disclose it! This is the safest choice.
When do I have to give a Seller Disclosure Statement to the buyer?
RCW 64.06.030 says that the seller must deliver the Seller Disclosure Statement within five business days of mutual acceptance of a purchase and sale agreement. The buyer has three days from when they receive the disclosures to either cancel the purchase and sale agreement or accept the disclosures.
If the buyer doesn’t respond within three days of delivery of the Seller Disclosure Statement, then the buyer has “accepted” it.
What if I don’t give a Seller Disclosure Statement?
If you fail to deliver a Seller Disclosure Statement, and you don’t meet one of the exemptions listed above, then the buyer has a right of rescission that lasts until three days after closing! This means that even if the sale has closed and recorded and the buyer has taken possession of the property, the buyer can unwind or cancel the sale within three days.
Be sure to deliver a Seller Disclosure Statement so that you don’t face any unexpected surprises!
This is not legal advice
Please note that this general information is provided for educational purposes, and is not legal advice. Everyone’s situation is different. If you need legal advice, please contact a real estate attorney.
People answer that in different ways, but one thing that I commonly hear is that the house “feels” like home. This is experienced by the buyer on both an emotional and an intuitive level at the same time. It is usually something that buyers have a hard time putting into words.
When you’re selling your home, you need to present your home in such a way that makes it easy for buyers to get that feeling of home. How do you do that?
The buyer must envision their stuff in the space, not your stuff
In order for the house to feel like a home, the buyer needs to be able to imagine what it would be like to live in this house. The buyer needs to be able to envision their own stuff in the house. They’ll consider bigger things like where we should put the couch and will our bedroom set fit this bedroom. But they’ll also be picturing the little things, like pictures and knick knacks on the wall, and how their existing decor will fit in the new space.
In order for the buyer to imagine the house as their own home, you need to declutter and depersonalize the house in order to create “space” for the buyer’s imagination. Space for the buyer to see where they can fit their stuff and make it their home. If the house is filled with your stuff, it is harder for the buyer to see their stuff in it.
If the space is filled with your stuff, it’s harder for them to see their stuff in it
Too much of your stuff will remind them that your house is not their home. You need the buyer to be able to see past that. That will make it harder for them to imagine living there, and less likely for the buyer to get the feeling of home.
When you’re getting your house ready for sale, one of the first things you should do is declutter and depersonalize the house. Create that space for the buyer’s imagination by minimizing your own stuff.
Here are some ideas to help you declutter and depersonalize your home….
How to declutter and depersonalize
How to declutter and depersonalize
Remove pictures and mementos from walls: This can be a tough one, but think about it. If the buyer sees your family and friends all over the place, it’s not going to feel like home. It will remind them that this is your house, not theirs. You don’t have to remove every picture, but try to limit it to one or two items per room. Pictures are distracting and draw attention away from your home.
Knick knacks, trinkets, tchotchke, and collections: We’ve seen homes that had so many knick knacks, souvenirs, and trinkets on the walls that you could not see the walls! This presents a real challenge for potential buyers. Not only does it prevent them from seeing their stuff in the space, but it also makes the house feel smaller.
This one might be tough: Pare down items that are overtly religious or political. Though those things may be very important to you, a potential buyer might strongly disagree with your point of view. Some people just can’t look past this kind of thing, and you don’t want them to form their opinion of your home based on a negative association.
Neutral colors: We once had a room that had blue and red walls, and another room with purple and some sort of nuclear yellow. Don’t make the same mistake! It only reminded buyers that it was our home, not theirs, and if they wanted to buy it someone was going to have to paint. If you have some colorful craziness going on like we did, consider painting over it with a neutral color.
Scent: Try to get rid of any odor issues in your home. Common sources of odors are garbage cans, shoes, pets, strong smelling foods, and smoking. If your home has an odor issue, it will smack people in the face as soon as they walk in the door. It makes a terrible first impression. Masking the odor with scented air fresheners can make it worse, because some buyers are very sensitive to scent. Professional carpet cleaning can help.
Fresh air: Whether your home has a scent issue or not, fresh air is always good. Crack some windows and let the house air out, especially before a showing or open house. This can help prevent odor issues from returning.
Clean out the pantry: This will make your pantry seem larger. You should donate food that is still good, but won’t be eaten. You can throw out food that is expired.
Clean up the bathroom: Try not to leave your toothbrushes, deodorant, and beauty products on the counter.
Fewer pieces of furniture: Remove unnecessary chairs, couches, end tables, that may be cluttering up small spaces
Purge: This is an excellent opportunity to get rid of some of that stuff that you’ve accumulated over the years.
What do you do with all the stuff?
Garage sale: This is a time-tested way to get rid of that stuff you don’t need anymore or never use.
Storage: If you have a lot of stuff that you don’t want to get rid of, consider placing it in temporary storage until after you move. If you can’t afford storage, try to make some room in the garage.
Donation: Give your stuff to an organization that helps people in need, such as the Goodwill or Habitat for Humanity.
Decluttering and depersonalizing your home can be a real challenge. It feels like you are dismantling your home’s identity, or even your own! As you put your stuff away, try to flip this feeling around by asking yourself the following questions:
Why do I have this thing?
Does it bring me joy?
When was the last time I used it?
What would happen if it was gone?
Do I really need to keep it?
If you ask these questions as you put stuff away, you might realize that you don’t really need so much stuff after all.
