Seattle Real Estate

For Sellers


Does Moving Up Make Sense?
Remodeling That Pays
12 Tips for Hiring a Remodeling Contractor
20 Low-Cost Ways to Spruce Up Your Home
Understanding Capital Gains in Real Estate
10 Things a Professional Realtor Can Do for You
 
For additional resources, please visit the real estate tips section. The local resources page contains useful real estate information from sites that have been researched for you. There are sections devoted to Seattle relocation needs, WA schools, real estate tax information, home and garden, maps and Washington weather.

If you are buying your home in the Seattle area, please be sure to visit the section for buying a home, create a saved favorites account and even prequalify for a home loan.

I hope you enjoy your visit and come back soon. I am always available for personal service by phone or email, so please contact me with questions any time!

Does Moving Up Make Sense?

The answers to these questions will help you decide:
  1. How much equity do you have in your home? Look at your annual mortgage statement or call your lender to find out. Usually, you don't build up much equity in the first few years of paying a mortgage, but if you've owned your home for a number of years, you may have significant unrealized gains.
  2. Has your income increased enough to cover the extra mortgage costs and the costs of moving?
  3. Is the neighborhood still a good one for your needs? For example, if you've had children, the quality of the schools may be more of a concern now than when you first purchased.
  4. Can you add on or remodel? If you have a large yard, there might be room to expand your home. If not, your options may be limited? Also, do you want to undertake the headaches of remodeling yourself?
  5. How is the home market? If it's good, you may get top dollar for your home.
  6. How are interest rates? A low rate not only helps you buy more home, but also makes it easier to find a buyer.
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Remodeling That Pays

Upgrading your home is always appealing, but which enhancements really get you a good return for your money when it's time to sell? A 2003 survey by Remodeling Magazine and REALTOR Magazine has the answer.



*Not included in the 2002 report

To see the complete article, visit http://www.realtor.org/rmomag.nsf/pages/costvaluedec03

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12 Tips for Hiring a Remodeling Contractor
  1. Get at least three written estimates.
  2. Get references and call to check on the work. If possible, go by and visit earlier jobs.
  3. Check with the local Chamber of Commerce or Better Business Bureau for complaints.
  4. Be sure that the contract states exactly what is to be done and how change orders will be handled.
  5. Make as small a downpayment as possible so you won't lose a lot if the contractor fails to complete the job.
  6. Be sure that the contractor has the necessary permits, licenses, and insurance.
  7. Be sure that the contract states when the work will be completed and what recourse you have if it isn't. Also remember that in many instances you can cancel a contract within three business days of signing it.
  8. Ask if the contractor's workers will do the entire job or whether subcontractors will do parts.
  9. Get the contractor to indemnify you if work does not meet any local building codes or regulations.
  10. Be sure that the contract specifies the contractor will clean up after the job and be responsible for any damage.
  11. Guarantee that materials used meet your specifications.
  12. Don't make the final payment until you're satisfied with the work.
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20 Low-Cost Ways to Spruce Up Your Home

Make your home more appealing for yourself and for potential buyers with these quick and easy tips:
  1. Trim bushes so they don't block windows and cut down on light.
  2. Buy a new doormat.
  3. Put a pot of bright flowers (or a small evergreen in winter) on your porch.
  4. Put new doorknobs on your front door.
  5. Put a fresh coating on your driveway.
  6. Edge the grass around walks and trees.
  7. Keep your garden tools out of site.
  8. Be sure kids put away their toys.
  9. Buy a new mailbox.
  10. Upgrade your outside lighting.
  11. Use warm, incandescent light bulbs for a homey feel.
  12. Polish or replace your house numbers.
  13. Clean your gutters.
  14. Put out potpourri or burn scented candles.
  15. Buy new pillows for the sofa.
  16. Buy a flowering plant and put in a window you pass by frequently.
  17. Make a centerpiece for your table with fruit or artificial flowers.
  18. Replace heavy curtains with sheer ones that let in more light.
  19. Buy new towels.
  20. Put a seasonal wreath on your door.
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Understanding Capital Gains in Real Estate

When you sell a stock, you owe taxes on your gain-the difference between what you paid for the stock and what you sold it for. The same is true with selling a home (or a second home), but there are some special considerations.

How to Calculate Gain

In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate this:

1. Take the purchase price of the home: This is the sale price, not the amount of money you actually contributed at closing.
2. Add Adjustments:
  • Cost of the purchase-including transfer fees, attorney fees, inspections, but not points you paid on your mortgage.
  • Cost of sale-including inspections, attorney's fee, real estate commission, and money you spent to fix up your home just prior to sale.
  • Cost of improvements-including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.
3. The total of this is the adjusted cost basis of your home.
4. Subtract this adjusted cost basis from the amount you sell your home for. This is your capital gain.

A Special Real Estate Exemption for Capital Gains

Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria.

1. You have lived in the home as your principal residence for two out of the last five years.
2. You have not sold or exchanged another home during the two years preceding the sale.
Also note that as of 2003, you may also qualify for this exemption if you meet what the IRS calls "unforeseen circumstances" such as job loss, divorce, or family medical emergency.

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10 Things a Professional Realtor Can Do for You
  1. Obtain and qualify prospects, eliminating professional lookers and non-qualified prospects.
  2. Diplomatically handle objections and overcome them.
  3. Assist in helping both the Seller and the Buyer navigate through the complex world of financing.
  4. Follow up with prospects without weakening your position.
  5. Handle the sale of your buyer's house if they need to sell prior to purchasing.
  6. Explain closing costs.
  7. Know how to justify your asking price to the Buyer.
  8. Relieve you of having to stay home to wait for Buyer's phone calls or for showings.
  9. Provide strangers access to your property without jeopardizing you or your family.
  10. Guide you through the closing process, including inspections, disclosures, obtaining flood hazard and hazardous materials information, assist in obtaining permits, assist the appraiser in valuing the property at the price where it sold, as well as a variety of other issues that may occur in any given transaction
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All reports reprinted from REALTOR Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS. Copyright 2003. All rights reserved. www.REALTOR.org/realtormag