Understanding Your Credit and Buy More Real Estate in Seattle
Did you know?
Many credit rating files contain inaccuracies that can affect your credit rating. With the threat of identity theft, the possibility of data sneaking in from a file of someone with a similar name to yours, and creditor reporting errors, it’s a good idea to keep an eye on your credit—particularly if you are thinking of making a large purchase, such as a Seattle area home, in the coming year.
Your Credit Report
Most creditors use one of three major credit bureaus: Equifax, Trans Union, and Experian. Because creditors aren’t required to report to all three agencies, the only way to get a complete overview of your credit is to request a report from all three, which you can do at www.MyFico.com. Once you receive your reports, check them for clerical inaccuracies, including late or uncredited payments. Review everything very closely and dispute any errors.
Disputes
What Lenders Look For
When lenders review your credit report, they are looking for a pattern of consistent, on-time payment. Too many open accounts, credit cards with high limits, and maxed out cards can all reflect badly on you. Close any opened but unused accounts, and be sure the creditor notes that the account was “closed at the consumer’s request.” Otherwise, lenders might think the creditor closed it for other reasons.
Make It a Habit
If you’d like more information on credit and home buying, please feel free to contact me at anytime.
Your First Mortgage-Buying a Home in Seattle Can Be Very Profitable
Did you know?
Low interest rates have enabled record numbers of people to become homeowners over the last few years and home ownership in Seattle is tops on forbes list of places to live. A buyer-friendly market has also motivated many to seek good deals in Seattle real estate. If you’re in the market to buy, one of the most important steps is learning about mortgages.
Your Budget
One of the first things you need to do is examine your finances very closely; this will help you determine how much of a home you can buy in Seattle. Depending on your income, you may actually qualify for a larger loan than you can afford to make monthly payments on, so it’s up to you to take stock of your income and expenses, both current and projected. Keep in mind, too, that other fees such as mortgage insurance, homeowner association dues, and property taxes can also be rolled into your monthly payment, so you need to account for those items when determining what you can afford. Buying a home in the Seattle city limits or outside of Seattle proper makes a huge difference on home value.
Your Finances
Your Mortgage Consultant
Feng Shui and how it effects your real estate in Seattle
FENG SHUI
For many people, home has become something much more than the place they live—it’s a sanctuary
that offers an environment that is relaxing, cheerful, uncluttered, and full of comfortable spaces.
As a result, the ancient Chinese study of natural and built environments,
known as Feng Shui, has become increasingly popular in Seattle homes and Western culture.
FACTS
Feng Shui can be a very practical solution for creating a harmonious environment.
Here are some interesting facts about Feng Shui:
In literal definition Feng Shui means wind and water. The ancient Chinese practice of Feng Shui is the
art of recognizing the energies of the earth; it’s an interior design form that has promoted harmony
and balance in Chinese culture for over 3,000 years.
Feng Shui experts believe that when the balance of energy is done right, the homeowner will feel
happier, kids may learn better, and the home will look and feel better.
The concept of Feng Shui is to create an environment that is harmonious to the homeowner.
One that supports health and good fortune with the placement of objects, use of color, landscaping
and the use of the five elements—fire, earth, metal, water, and wood.
In order to avoid spending an excessive amount of money, concentrate on areas in your home that
you spend the most time in. Improving your home’s Feng Shui can be as simple as the placement
of a plant, the adding of a mirror to a wall, or simply rearranging your furniture.
If you would like to discover how to apply the concepts of Feng Shui to your home,
I recommend visiting, www.amazon.com; here you will find a plethora of books, tools, videos,
CDs, and DVDs that can get you started on this ancient Chinese tradition. You can also go to
the International Feng Shui Guild’s Web site to locate a practitioner referral list for
Feng Shui consultants in your area, www.fengshuiguild.com. or www.fengshuiseattle.com
for seattle home owners.
Cleaning the Garage [a Seattle real estate guide]
WHAT IS A GARAGE?
Remember when garages were used as parking spaces? If you’re like Seattle residents and millions of other U.S. homeowners, that parking space has become a dumping ground for clothes that no longer fit but that you can’t bear to part with, bikes that don’t get ridden, underused garden equipment, and Holiday decorations. If you’d like to reclaim your rightful parking space, or if you’d just like to reintroduce a little order to your storage area, here are some helpful hints:
Excavation
The first step to an organized garage is to go through everything currently calling your parking spot home. Create categories: 1. What to keep, 2. What to donate or sell in a yard sale, and 3. What to throw away.
Once you know what you’re keeping, decide if it needs to stay in the garage or if there is a more logical place for it in the house.
Clear the Way
Though the floor seems like the obvious place to store things, walls, backs of doors, and even the ceiling can provide alternatives that will help clear space. Wall-mounted organizers can employ hooks, baskets, and shelves to get stuff up and out of the way. Sturdy ropes or steel shelving can create ceiling hangers for bikes, ladders, and lighter weight furniture.
Like with Like
Think logically. Are you storing garden hoses with drill bits? Does it make sense for potting soil to share space with motor oil? Create stations for your stuff: gardening center near the garage door, a tool bench near the door to the house, old or seasonal clothes tucked away. Place the things you’ll use most often in the most easily accessible spots; store the rest in bins or shelves that are clearly labeled.
Storage Stuff
- www.stacksandstacks.com
- www.lowes.com
- www.rubbermaid.com
- www.amazon.com
- www.storables.com
- www.storageinseattle.com
And visit www.tidygarage.com for more helpful hints and encouragement.
A Home Gym Can Save Time and Money
During the cold winter months, the simple act of motivating yourself to exercise can be as challenging as running a marathon. But in order to be beach ready by summer, you need to be active now. Creating a home gym can be a big step in the right direction when it comes to keeping healthy and in shape. Whether your budget is big or small, you can build an effective and—believe it or not—enjoyable workout space at home. It all starts with the right equipment.
Get Your Heart Pumping
Unless you plan to walk or jog outside, you need to find a way to incorporate a cardiovascular routine at home. You can do this in several ways: buy some exercise videos, turn on some music and dance around, or invest in a cardiovascular machine such as a stationary bike, elliptical trainer, or treadmill. If you are going to splurge on a machine, do so wisely.
Cardio Machines
Bells and Whistles
Before You Start…
Is a Second Home a Good Investment? Yes, If you buy in Seattle!
Did you know?
Almost 40% of those buying a second home don’t plan to use it for vacation purposes, but rather as an investment property. In most areas throughout the Seattle region, home values have appreciated at an exponential rate. Partner that with continued low interest rates and many homeowners find they are in a good position to invest in additional real estate. While many second homeowners are seeking mountain seclusion or a beachfront getaway, the number of those investing in a second home to pad their portfolios is growing consistently. Is a second home a wise investment for you? There are several factors to consider:
Can You Afford It?
There are many costs associated with owning a second home besides the additional mortgage. Some things to keep in mind are maintenance, repairs, property taxes, security, and insurance.
Location, Location, Location
Where you choose to look for a second home can determine how smart an investment might be. For instance, a waterfront home on the shores of lake washington in Seattle sounds lovely and should be easy to rent when you’re not using it, but will it be in danger come flood season? Also, if your investment property is located in another city or state other than Seattle, consider the travel expenses, not to mention time, involved with every visit or check-up. Another issue can be the market in which the property lies. Houses might have appreciated steadily over the past two years, but what will happen to home prices as we enter a less frenzied, more balanced market?
Taxes
How will owning a second home affect your taxes? Each case is different. I recommend talking to your lawyer or financial advisor to fully understand the benefits and potential pitfalls.
Childproofing Your Seattle area home
Childproofing Your Seattle area home
Did you know that accidental injuries from burns, drowning, suffocating, choking, falling, poisoning, and firearms are the leading cause of death in children 14 years of age and younger? A third of these incidents in Seattle happen in the child’s own home. Though we can’t prevent all accidents, a few simple childproofing measures can help make your home safer for young ones. · Turn your water heater to no higher than 120 degrees to prevent scalding.· Use safety latches on doors that lead to swimming pools, hot tubs, or other potentially dangerous outdoor areas.· Secure heavy furniture and bookshelves with devices that adhere them to walls. Also, place furniture away from windows.· End caps on door stoppers can be choking hazards. Remove them.· Plastic bumpers on sharp corners of coffee tables, entertainment centers, and other furniture can prevent bumps, cuts, and bruises.· Gate off stairways and entrances to rooms that contain dangerous or fragile objects.· When cooking, turn pan handles inward or use the back burners if possible.· Keep dangerous chemicals and poisons up high and in a room that is not accessible to youngsters. Even a latched cabinet can’t always keep diligent youngsters out.· Place covers over all electrical outlets.· Use a cordless phone so you never have to leave a child unattended while you answer the phone. Keep it close in case you need to call someone quickly. · Install smoke detectors and carbon monoxide monitors on every floor of your house. Check the batteries regularly. While supervision is the best way to prevent unfortunate accidents, any parent knows that you can’t watch small children every second. Following some or all of these tips should help make your home a little safer, and offer you peace of mind.
Energy Conservation and how Seattle property values soar.
February is Energy conservation month
In recognition of February being National Energy Conservation month, I would like to take the opportunity to share some information with you about energy efficiency. One of the best parts about energy efficiency is that you can help protect the environment and save money—all at the same time.
The first step to energy efficiency is conducting a home energy audit. This allows you to assess how much energy your home is using and where you can potentially conserve. Here is a list of things to look for when conducting your own home energy audit, as well as ways you can save energy and money:
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Air Leaks—
You can check for air leaks (drafts) along baseboards, edges of flooring, or junctures of the walls and ceilings. Flowing air through electrical outlets, switch plates, window frames, weather-stripping, fireplace dampers, attic hatches and wall or window mounted air conditioners are also good places to check. You can usually seal leaks by caulking or weather-stripping them.
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Insulation—
If the insulation levels in your home are less than the recommended minimum, you could be losing heat through the ceiling and walls, which could cost you a lot of money. If you think this is happening, consider having a professional assess the insulation levels in your home to determine if you need additional insulation installed.
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Heating/Cooling Equipment—
Inspecting all heating and cooling equipment annually is also a good idea. Replace filters every other month or so, especially when usage is high. I also recommend having a Seattle area professional check and clean your equipment once a year. And if your appliance is more than 15 years old, it’s probably time to update it with a newer, energy-efficient unit. In the meantime, to reduce your demand on heating, it’s recommended that you keep your thermostat set between 65 and 72 degrees during the winter months. Keep in mind that by simply lowering your thermostat one degree, your furnace will use seven percent less energy overall.
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Lighting—
It is estimated that lighting accounts for about 10% of your home energy bill. Lighting that has the Energy Star label uses about 66% less energy than standard lighting. Energy Star compact fluorescent lights (CFL’s) provide the same lighting as standard incandescent bulbs but use less energy and last ten times as long.
- Household Appliances —
When purchasing new household appliances read the Energy Guide labels which estimate annual energy use. Many energy-efficient washing machines use up to 40% less water and 60% less energy, which over the process of a year can reduce your power bill by up to $100. Energy-efficient refrigerators use on average 40% less energy and the dishwashers can use up to six less gallons of water per load than washing by hand. Add up the numbers and the savings are significant, both in dollars and energy. There are a number of things you can do to conserve energy around your home; these are just a few ideas to get you started. For more information about energy conservation, I suggest going to www.energystar.gov.
Go Green Without Going Broke in Seattle
How Can I Save the Environment Without Going Broke?
Though many of us in Seattle have heeded the call to live a greener life, we’ve found that what’s good for the environment can sometimes be hard on the wallet. But our friends at Kiplinger’s Personal Finance have put together a list of ten ways to go green without going broke.
1. Insulate your water heater
If it was built before 2004, you can save as much as 10% on your annual water-heating bill by wrapping the tank in an insulating fireproof blanket.
2. Tune up your furnace.
Getting your furnace serviced every two years not only reduces the amount of carbon dioxide it emits, it also cuts your heating bills by up to 10%. Living in Seattle climates, we use our furnaces to an extent.
3. Lower the temperature
The Alliance to Save Energy estimates that you can take 5% off your heating bill for every degree you lower your home’s temperature during the winter.
4. Pad those pipes
You can cut heating costs just by insulating exposed hot water pipes in your home.
5. Weather strip your doors
Putting weather stripping around your front and back doors will net you around $30 a year in energy savings.
6. Wash your clothes in cold
That uses 50 % less energy than washing them in hot water. Use a detergent that cleans well with cold water washes. Some machines wash in hot and rinse in cold.
7. Don’t use permanent press
Employing the regular setting instead of the permanent press setting on your washing machine will conserve five gallons of water per load.
8. Watch your water flow
Save a gallon of water per minute when you’re doing the dishes by restricting the water flow to a stream the width of a straw. Save another two gallons by turning off the water when you brush your teeth for two minutes.
9. Fix that leaking faucet
10. Check your toilet tank
Will your remodel payoff? How Seattle home-owners fair.
Did you know?
Almost 40% of Seattle home-owners took on home remodeling projects last year. From spicing up the kitchen to creating a bathroom that feels more like a spa, upgrades to your most valuable asset can pay off handsomely. With remodels, there is more at stake than improved livability; you could be adding thousands of dollars of value to your home. When done right, the money you put into a remodel may return to you in kind, or greater, when you put your house on the market.
Getting the Highest Return on Your Investment
Some remodels will reap greater benefit than others, and a lot of what you see will depend on the Seattle market area at the time your house is listed for sale.
Before you start any remodeling project, make a list of what you hope to achieve. A room-by-room analysis of your home can give you a good idea of where improvements are most needed.
Once you have a sense of what needs to be done, you can weigh that against what might reap the greatest reward when the time comes to sell your home.
Is Remodeling Really Worth It ?
According to Remodeling Magazine’s 2007 survey, the average remodel will net you a hefty percentage of your original investment: A minor kitchen remodel with cosmetic changes such as new cabinets or countertops, could net you as much as 106.4% of your investment. A mid-range bathroom upgrade, including skylight, double sink, Jacuzzi tub, and tile floors, will bring back 103.2% of your money. Adding another bathroom is expensive and complicated, but could show returns up to 91%. Adding a sunroom could reap benefits to the tune of up to 70.6%. And converting your basement into a more pleasing living space could bring a 92.7% return.
Other common remodels include:
§ Major kitchen remodel: 97.1%§ Bathroom addition: 90.9%§ Roofing replacement: 88.9%§ Vinyl siding replacement: 88.8%§ Cement siding replacement: 101.8%§ Deck addition: 91.1%§ Family room addition: 81.8%§ Attic bedroom remodel: 98.3%§ Vinyl window replacement: 96.4%
By the way… I hope this information has been helpful to you. If you know someone who could also benefit from this type of information, or who is in need of a trusted real estate advisor, please forward their contact information to me so I can get in touch with them. I’m never too busy for your referrals. Sonny Kwan • VP of International Marketing • 206-819-8228 • sonnykwan@johnlscott.com
