The Feel of Whidbey Island

Beautiful video that gives you the feel of what it's like to be on Whidbey Island.  

Most Common Pitfalls of Selling a Home

Selling your home can be an exciting, yet challenging, time for a homeowner and it is important to know to how to approach each stage of the sale to get best value for your home. Many people get excited when selling their home because of the potential of making good profit as well as moving to a new home.  Often homeowners make some mistakes which can put your sale process off track resulting in either your home not selling or you getting a less desirable price for it. In this article we will discuss some of the most common pitfalls of selling a home and how to avoid them.

1) Selling Your Home Without Being Ready

You may have lived in your home for several years and even have an emotional attachment to it.  Many homeowners put their homes up for sale without being mentally prepared for it. You should analyze why you want to sell your home and if you are really prepared to move to a new home. You can talk to your family, friends and even neighbors if necessary to help you make the right decision.

2) Entering the Housing Market Without Research

The second mistake that many people do when trying to sell their home is not doing any research about the housing market. The supply and demand curve of the housing market keeps fluctuating so you should know what the present situation is before trying to sell your house. When you know the market conditions you will list your house for the right price which will facilitate a smooth sales process and good profit in a timely manner.

3) Choosing the Wrong Realtor

This is another common mistake that many homeowners make when looking to sell their home. Choosing the right realtor can make a lot of difference in whether or not your home is sold and the amount of profit you make from it. You can take suggestions from friends and relatives about a good realtor but also do your own research and never hire someone just based on recommendation of others.  A good realtor will let you know the steps that will happen before your home is listed for sale and will also keep you updated routinely about feedback from showings and help with offers.

4) Neglecting Necessary Repairs

You will have to sell you home for a lower price resulting in less profit if you don't complete the necessary repairs before putting it up for sale. You would have to spend some money to complete the necessary repairs but if potential buyers see these faults in the home they may either refuse to buy it or bargain for a lower sale price.  If they notice one repair that has not been completed, they will immediately assume that there are other things you have neglected in the home.  You should avoid this and complete all the necessary repairs before selling a home so that you get the best price for it.

Mortgage Pre Approval

Some people, so wrapped with house-buying fever, tend to overlook mortgage pre approval, the most crucial part of the process. Mortgage pre approval describes the actions of examining your finances by a lender, to decide if you can afford to pay for a home. This process is important as you will get a certificate that you can present to sellers as proof that you can afford their property. While not all sellers require a pre approval letter, it certainly gives you an advantage especially where there are many offers for the same house.  And in today's market where properties are listed for sale and go to pending within a matter of days, you need to be prepared to present your strongest offer to the sellers.

Morgage Pre approval process-what to know? 

The process is quite rigorous and you must meet a number of requirements to get this important mortgage document. The requirements may vary depending on the lending institution but in most cases you have to produce:

· Bank statements

· Tax returns

· Proof of debts

· Social security number

· Pay stubs

· Credit report

· Any other relevant financial information.

Lenders or banks need this information to compare it with current market behavior and determine your eligibility to borrow.  It also points buyers to houses within their budget. This shows home sellers that you have a solid plan on how to pay them and while the process might take a couple of weeks, the pre approval letter lets the sellers know that the deal they agree to with you is solid and more likely to proceed smoothly to closing.

Besides increasing seller confidence in buyers, the mortgage preapproval process also helps people to look for the right homes that are within their budget. This saves time and money not to mention easing the home buying process for all parties involved. Those who attempt to buy homes without a pre approval certificate only take longer to close the deal as they need to arrange funds which are not always readily available.

A pre approval is important during the shopping process but that is not a guarantee that you will get approved for a mortgage loan. It is also possible to apply for the loan from a different lender though mortgage approval through the same lender may be a shorter, less involved process.

Mortgage pre approval is much different from prequalification. The latter is only an estimate of the price range of the house you can afford and a highlight of what a lender would loan you.  They do not require the types of documents, as listed above.  They are often just estimate an appropriate house purchase based upon your credit score and the yearly income information you state (without documented proof).  

It is only after deciding on your options that you can proceed to seek the mortgage pre approval from a certified, qualified bank or lending institution.

Staging your home for a quick sale

When you are selling your home you need to properly represent or stage your home.  Staging a home creates a feel for your house that potential buyers will appreciate the first time they view your house (whether in pictures or in person).  In today's market, it's important to take the time to set the stage for a quick, full-price sale.  Selling a house is not an easy task and you have to devote some time to get ready for it. 

Here are some tips for staging your house:

Boost The Appeal

In order to attract a buyer to come through the front door, you have to pay attention to your curb appeal.  Power wash the walkways, driveway and house siding to create a cleaner look.  In our area, you also need to pay attention to any moss on your roof.  A mossy roof, or mildew/green patches on the house or driveway give a dingy/dull appearance and make the potential buyer wonder what other parts of the house have been neglected.  Cracks on a concrete driveway should be repaired.  Worn away paint or stain on your front steps needs to be spruced up too.  

Outside the house hang some easy-to-read house numbers and keep some blooming flowers in your flower beds and in pots (hanging or otherwise) out front.  Wash the front windows and if there are any stains repaint it. All these will accentuate the look of your house.

The Home Should be Neat and Tidy

A neat and tidy house attracts buyers.  If they are unable to look past your clutter to picture themselves living there, then you've lost a potential buyer.  Make sure that the house is sparkling clean with neat and clean closet, bedroom, kitchen and clean bathrooms.  

Clean the Clutter

If you have kids or children at house then a heap of toys or a clutter of clothes over the bed or floor is quite common.  Pets can also create their own messes of toys and equipment.  Even adults can keep large volumes of personal items laying around.  Yes, the potential buyer recognizes that a person still lives in the house... but they still want to walk into a model home.  Remove half the items in your closet - a large closet begins to look like a small closet when you have it operating at max capacity.  A potential buyer will envision more storage space when it appears that you were unable to even utilize all the space available while living there.

In the kitchen, remove all items from your refrigerator (time to pack up you're child's A+ on the spelling test and recent art creation).  Remove all items from your countertop as well (if possible).  The less items on the counter, the more potential counter space available and you can never present too much cooking space.  Yes, we recognize you still live there, but it is an easy step to remove your favorite toaster, canisters, cooking equipment and even coffee maker.  If your counter space is limited, remove it all.

Rearrange Your Furniture

Before the buyers pay a visit to your house, make sure that all the pieces of furniture are at their right places. Rearranging the furniture neatly is very important.  If your dining room is large, accentuate this with a large table and chairs.  If it's cramped, remove any extra table leaves and remove some of the chairs to not show how cramped the situation can be.  Decorate the top of the table with a vase and flowers as well as decorative plates, napkins and glassware that you might use for entertaining. 

In your living areas, accentuate focal features by positioning the furniture properly.  For example, do not block a fireplace with your coach, instead re-position the coach so that someone sitting in it would be facing the fireplace.  Remove over-sized furniture and opt for smaller pieces.  While the large furniture might show that you can fit big pieces in the room, it also takes up a lot of space and can make the room appear smaller.  Set the stage with decorative items like throw pillows and soft blankets to make potential buyers feel at home.

Beware The Odor

Staging a home doesn't just stop when things look good, it also needs to smell good.  The use of air fresheners can help with this.  You could opt to turn on a wax tart burner for a few hours before showing your house.  If you don't happen to have that much time, add a couple cinnamon sticks to boiling water for a few minutes as this scent seems to over power a lot of other common household odors.

You want to sell your home for top-dollar, and setting up an environment that is welcoming to many people is the best way to do this.  So take the time to remove some of your personal items and rearrange things to make it more inviting to others.  Although it may not be the easiest home to live in for a week or so, it will help you to quickly move on to your next home.

Foreclosure Property Pros and Cons Analyzed

Buying foreclosure property is slightly different from buying a typical resale or constructing one from scratch. You need to be extra careful when approaching such an offer because the "good deal" on paper may not necessarily translate to savings on your part at the end of the day. The only way to determine if it is really a nice offer is to compare the foreclosure property pros and cons before making any decision. 

Pros

-The obvious benefit to buying a foreclosed home is that you can get it at the lowest possible market price (that is if you do your homework). Actually, sometimes you could get a house for 50% or less than the market price. 

-If you’re lucky to find a short-sale property, you may be in a position to capitalize on the seller’s sense of urgency to negotiate for a much better deal. Also, if the property is not bank-owned, you can take your time to perform inspections when the property is still pre-foreclosure. 

-If recent past trends are anything to go by, buying through foreclosure can save you about 15% off traditional sales as the homes are priced with the cost of repair and rehabilitation in mind. In fact, you can buy a foreclosed home, rehabilitate it and then wait for property prices to rise and re-sell it for profit. 

-The best thing about buying a foreclosure home is that all transactions are done in business-like fashion. No emotional issues are involved and the buyer, seller and lender only need to agree or disagree to the terms of the transaction. 

While there are many pros to buying foreclosure property, there are still a few cons to it. 

Cons

-The main disadvantage with this method of owning property is that you buy the home “as is where is”. Yes you may perform an extra-thorough inspection on the home but this might not always give you a clear picture on what to expect once you’re the owner. In the end, the discount that attracted you to the deal might wind up costing more than building from scratch. 

-In some cases, you may receive a Special Warranty Deed instead of the Buyer’s Title (especially if the foreclosure is still under review). In such a situation you need to invest in a good title insurance policy to protect your interest just in case the foreclosure is overturned and the house goes back to the original owner. This of course means additional cost burden.

Bottom Line

Investing in a foreclosure property has its fair share of pros and cons. And while the merits might heavily out-weigh the demerits in some cases, it is always advisable to cross-examine the deal before accepting any offer. 

Yes there are many good deals out there, but there are also quite a few albatrosses to watch out for! 

5 Ways to Increase the Value of your Home

With the real estate market still recovering, many people have decided not to sell their homes. Instead, most of them have chosen to work on increasing the value of their homes through renovations in preparation for the market to fully return. The following article provides a glance at some of the best renovations for home values.

Bathroom addition

A complete bathroom renovation can easily recoup 70%-140% of whatever you spend on the entire exercise. According to real estate agents, potential buyers are usually attracted by spacious bathrooms that have clean bath tubs and stand up shower facilities. Other things like stylish shelves, sinks, and wide mirrors can also attract more clients and in the process help the homeowner make a good sale any time.  Adding an extra bathroom can also greatly increase the marketability and re-sale price of your home as prospective buyers love the idea of not having to share bathrooms with their guests.

Deck Addition

Currently, outdoor living spaces are considered to be the "in" thing to many people with our love of personal relaxation as well as extra entertaining space. According to analysts, the cost of adding a deck is usually determined by its size and features. Such good renovations usually cost about $7000 or more. However, despite being costly, beautiful decks often attract more clients and increase profit margins by up to 25%.  If you intend to be in the house for a long time, the use of composite decking materials can help to reduce maintenance headaches... but will also boost the cost significantly.  If you are adding the deck for a little personal use, but ultimately will sell the property quickly then use of cedar decking may be a more cost-effective material.

Installation of energy efficient insulation

A poorly insulated home can quickly drive away potential buyers and at the same time force home inspectors to write negative reviews about it in their reports. Ironically, installation of such equipment normally costs very little since the government supports such exercises. Some of the most common energy-efficient insulation options include fiberglass batts and blankets, loose-fill fiber (blown-in insulation like you find in an attic), structural insulated panels, and foam insulation.  Most of these additions are difficult to do once a home is built, but if you are lacking some attic insulation, this is an easy update you can do without tearing open walls.

Reinventing a room

The number of rooms in a house can easily dictate its selling price in any property market. Thus, by adding square footage, a homeowner can easily increase his profit margin since he will have more reasons to convince clients to pay extra.  The cost of simply adding extra square footage can often be quite costly and you would have to cross your fingers that you will recoup that money when you sell.  It is best, instead to take the room you have to work with and be sure to maximize it.  Do not opt to convert 2 medium-size bedrooms into one huge one, unless you are wanting to stay in the house and get the most out of this massive room.

Introduce an income suite

With the introduction and promotion of domestic tourism, many homeowners who have rental income suites in their homes continue to make enormous profits throughout the year. Such individuals stand good chances of getting returns from the sale of their properties.  If you intend to live in the house while renting out another portion of the house you will have to be sure that your home is zoned by your city/town to allow for this.  Then also be sure that you can easily create a separate living area for your tenant with their own entrance.  To preserve your own sanity, you do not want to be sharing a front door with your tenant and it will eliminate a lot of safety concerns.  Also be sure to screen all tenants thoroughly since you will both be living under the same roof and you don't want to find out after a few months that they have undesirable habits.

Any reliable renovation exercise can easily increase the value of the property and at the same time attract many buyers within in a very short period. Other benefits associated with such kind of activity include reduction of regular maintenance costs and strengthening of the positive relationship you have with your immediate neighbors and community at large.

Rent or Own?

The choice of own vs rent a home is one of the biggest financial decisions that most adults make. This is because both of them have advantages and disadvantages, based on a person's specific circumstances. It is easy to debate the various benefits of buying a house, especially because homes normally appreciate in value. However, after the housing crisis, buyers have become more cautious, and they are debating which option is better for them. The following are some of the circumstances that would make it good to buy a house, as well as circumstances that would make it advisable to rent a home.


When is it advisable to rent a home?


1. You live in a city and are working a job that you do not particularly love. You are actively hunting for a job all over the country. If you are facing career uncertainty, then it is advisable for you to rent your home. Buying a home will tie you to your current location, and this is definitely something that you do not want.


2. If you are a very flexible kind of person who is always moving around and traveling from one corner of the world to another, buying may not be financially advisable. If you are also unsure about a neighborhood, or you want to explore various areas before you settle down, you will need a flexible living situation. In this case, renting is definitely better than buying.


3. The mathematics of buying a house can be tricky. You will need to commit to paying mortgage payments for quite some time in order to avert repossession. If your income is uncertain and you may get a pay cut in the future, you should pause first before buying a house. In this scenario, it is much better to rent a home until your source of income is more solid.


4. If you have a bad credit score, you may not qualify for a mortgage loan. Even if you do get a mortgage, the interest rate will be extremely high. Instead of buying a home, you can try and improve your credit score by renting a place and paying the rent on time. This is a much better decision in the short term.


5. If you do not have the money to handle maintenance costs, then you should consider renting. When you own a home, you are the lucky person responsible for all the roof leaks and plumbing issues. This can be costly in the long run. If you would like to avoid this expenses, then renting is a better option.


However, there is a downside to renting. One of the biggest disadvantages is that the rent may fluctuate a lot during your entire renting period. This will significantly affect your long term budget, as rent is a very big-budget item.


When is it advisable to buy a home?


1. When you want to build equity in the home that you live in: This is one of the biggest advantages of buying a home. In both owning and renting, you will need to make monthly payments. The difference is that when you buy a home, the monthly payments build your equity. This means that every monthly payment increases your stake in the home. Later, if you want money, you can borrow a loan against this equity. In case the interest rates drop, you can refinance your home and getter better interest rates. Most experts suggest that if you intend to live in a house for at least seven years, buying it is better than renting because of the increased equity.


2. Uncle Sam will smile more at you if you are a buyer. If you want a few tax credits, then buying a home is the best option. This is because property taxes and interest rates on mortgages are tax deductible. Therefore, you will be able to save quite an amount by the time you are done with the mortgage payments.


3. When you buy a home, you are not answerable to anyone else. You can hammer away and add the wall hangings, spruce up your bedroom and kitchen, and repaint the bathroom to your favorite color. You are not accountable to a landlord for the decisions that you make. If this kind of freedom is enticing to you, then you should definitely buy a home.


4. When you take out a mortgage that has a fixed interest, the monthly payments will be fixed. This will help you to budget your finances in the long run. However, with a rented house, the rent can fluctuate and disorganize your finances. This is because the landlord can easily increase the rent after every few years.


Conclusion


The debate of which is better between to own vs rent is solely based on your circumstances, your needs, and your station in life. For those who want to establish roots in a place and to live there for a long time, buying is better. However, for the flexible individuals who could move halfway across the country at any time due to their career, education, or any other factor, renting is probably the better option.

Best Paint Colors for Small Rooms

What color do I select for my small room to appear large?

Well if you have been searching answers for this question, I'm sure most of the answers you received would recommend 'white' as the only option. But, trust me - an all white color palette or for that reason a room with less furniture is not going to look larger all the time. This is a common misconception of small-space design which almost all of the inexperienced designers have in their minds. However, carefully arranged furniture and colors chosen can make the room look much bigger and way beyond its diminutive size. Here are the tips and tricks to select the best paint colors for small rooms.

Lets get started.

Rule number one for coloring a small space - There are no rules, REALLY. If you want your flat to look soothing and appealing, you should never go with the rules set by others, rather collect some tips and tricks & you are good to go.

Tip 1: Select Sharp Colors
One of the most effective ways to expand the existing space is by choosing clear colors. Choose a palette of sharp and vibrant colors rather than the duller ones. Combinations of colors that have negative space between them will enhance the openness and clarity of the space.

Tip 2: Connect spaces with different color shades
It is one of the best and mostly unexplored way to select different shades to unite the spaces. Just as various colors divide and differentiate your apartment, different shades of a single color can re-unite the empty spaces of the rooms.

Tip 3: Stretch with Stripes
Stripes always add a feel of increased dimension in their direction of travel. That said, vertical lines make the room taller and horizontal stripes make the room look wider than usual. But make sure you do not use both of them together as they will look clumsy and destroy the entire appearance of the room.

Tip 4:Create a Contrasting Wall
There are huge debates over the idea of painting a single wall in an altogether different color or a color deeper than the others in the room. But the practical tests suggest the positive impact this idea has upon the appearance of the room. It can add wonderful effect to the small spaces. Designers now-a-days have been stating this line - "Do not be afraid to use bold colors - Many a times, a darker color on one of the walls can push the wall further away and make the space look larger than before.

Bonus Tip: Don't forget the Black
Add an object that is black to the room and observe the difference for yourself. This helps in grounding the space and clarify the remaining colors.

Fixer Upper Pro's and Con's

Ahh the joys of purchasing a fixer upper. This can be a wonderful dream come true, or one of the worst nightmares ever.

There are a million and one fixer upper pro's and con's, and this can make the new home owner a little nervous.  Some of the fixer upper pro's and con's consist of questions such as:

• Is the property worth the money needed to be rehabbed and then resold?
• How quickly can the fixer upper be rehabbed, and should the property be sold or rented out? 

Well I am here to tell you that firstly, yes. Just about any home, rather it needs a lot of work, or just minor repairs, can be fixed as long as the investor possesses the cash flow, the time and the experience to do what is needed.

Now lets suppose that the fixer upper was purchased to be the individuals personal home.  In this case, the fixer upper pro's and con's really does come into play.  Now the buyer has to decide if the repair needed is really some thing they can afford, will they be living in the home while they are repairing it, or will they be remaining in their own home and just spending the weekends at the fixer upper.  All of this needs to be considered, as well as the actual cost of the on-going repairs and cleaning.

However, putting the pro's and con's behind you, purchasing a fixer upper can be a lot of fun. The real pro's of buying a fixer upper is the fact that you can do whatever you want to the home, to make it reflect your own personality and taste. If you want pink and green striped walls, well then you can have pink and green striped walls.  What if the home has a large yard?  Well now you get to plant all those pretty rose bushes that you have always wanted.  Or perhaps you wanted to have a large daycare; now is your time.  As long as you know the city code, concerning the fixer upper you just bought, the sky is the limit!

However, most people dream of making money off the fixer upper they had just bought. This can be a wonderful opportunity for you, this could be the way to make you're dream come true. What ever reason might be that you have purchased the fixer upper, with a the proper experience, cash and time, this can be a great experience.