Closing Costs: A Breakdown

Many wonder what all goes on the table at to complete a transaction. Here is a breakdown of potential closing costs. It is always important to consider these possible amounts when pricing, selling or purchasing a home. 

*Other important amounts for sellers to consider are excise taxes, septic service (if applicable), buyer closing costs (if requested/agreed upon) and repairs.

And as always, consult your Realtor with any questions- it's what we are here for! :) 

Home For Sale: Olympia WA- Park Like Setting Close to Town and Trails

READY FOR YOU TO MOVE IN~ Beautiful home near schools, medical facilities, entertainment, shopping and hiking trails! 837 Coulter St NE, Olympia WA. $249,900
Courtesy of Kimberly Linson- Realtor and LauraLee Zuber-Realtor
John L. Scott CNT
360-736-9939

This Historic Home: Then and Now. 811 N Pearl, Centralia WA

The neatest part of historical homes is seeing them in all their grandeur throughout time.

Mark Althauser at our John L. Scott Centralia office currently has this beautiful home on the market, for a STEAL.

The story: 

In 1907, The Palms family purchased a plot of land in the heart of the new and booming town of Centralia, Washington. By 1910, they had this home built. Theodore Palms was a lumberman with interest in the Walville Lumber Company. He passed away in 1925. (Don't fret though, there are no records indicating he passed away in the home!)

This area of Centralia has a history of noble residents and outstanding homes. 811 N Pearl Street was centered near the train station, banks, bars, and town stables. Back then it was "the center of it all". Today it still is in the downtown area, although it has become more residential. Downtown Centralia has unique restaurants, an restored historic FOX theatre, and antique shops that reflect the history of the area.

Contact Mark Althauser at John L. Scott Centralia for more information about this spectacular historic home. 360-736-9939

5 Things That Make Your House a HOME

Home: any place of residence or refuge.

After helping sellers stage homes, buyers settle into a new purchase, and enhancing my own house, I have come up with a list of 5 things I think really change the atmosphere in a residence. 

1. Add some plants. Research has shown that indoor plants improve the air quality, encourage happiness and stimulate cognitive function/concentration. In addition to making your home look great and alive, plants help create a relaxing atmosphere.  
   
   
   
2. Don't be afraid of color. White walls are impersonal and sometimes unwelcoming. Warm neutrals with color in pillows or accent decor are a great option if you are selling your home, while bright bold colors are a fun move if you are looking to make your home a bit happier. Renting? Not a problem! You can use temporary wall paper, wall decals with a pop of color, washi tape geometric designs or even cornstarch and fun fabric! 
   
   
   
3. Get organized. Take some time to reduce clutter, get rid of unused items, and functionally store the rest. There are great articles online about minimalism and organization. This will always give your home a clean, presentable feeling while reducing the scattered feeling of "having so much to do".
   
   
   
4. Don't forget the front door. You go in, you go out. Guests come and go. Make the entrance to your home welcoming, which is always nice to have after a long day. You can do this by adding an interesting coat rack, welcoming decor/signage, a fun doormat, or inspiring art. 
   
   
   
5. Have a getaway. The best part of being home is being able to relax in your own space. Dedicate somewhere in the house to a quiet, creative area. Mine is actually in a nook in the corner of our master bedroom. There I have my special trinkets, favorite photos, a "creation station" (small bright red desk for painting and writing) and motivational decor. 
   

Contact me today with assistance in staging and selling your home! 

email: kimberlylinson@johnlscott.com

website: kimberlylinson.johnlscott.com 

Easy Curb Appeal Ideas for Summer

I know it is "technically" a few weeks away, but I think it is safe to say that SUMMER IS HERE in the Pacific Northwest! Now is a great time to get outdoors, finish those projects you have been waiting on, and add a slice of summer to your home's curb appeal.

Main tasks to enhance curb appeal:

• Plants and landscaping- trim up those overgrown plants, refresh the ones that made it through winter, and plant new flowers/shrubs in the yard or in planters.
• Clean exterior- rent or borrow a power washer (if you do not own one) and scrub down the sides of your home. You will be amazed at the difference! Click here for a tutorial 
• Decor- Add a potted plant, welcome sign, decorations or a wreath to your front door to create an inviting atmosphere.
• Fertilize- Lay down some fertilizer at the beginning of summer to enjoy green grass all season.
• Fix any small projects in need of attention- for example: clean your gutters, fix any broken fixtures, change lightbulbs that have been burnt out, etc.

Interesting ways to enhance curb appeal:

• Get funky! Take recycled materials and craft them into garden decorations (don't go overboard, but do have some fun)
• Paint your front door- a recent study showed that painting your front door a unique color will not only add curb appeal, but will make your home stand out in a beautiful way. 

• Redo your house numbers- some ideas are to add numbers for the outside of your home on tiles, wood and even planters! Click here for a tutorial on planter house number signs

• Yard Sales- see what you can find at local yard sales to add some frugal yet tasteful decor to your porch or garden.

Enjoy the summer- get your green thumb, tool belt, and your paintbrush ready! 

*And as always, contact me for more home advice or Real Estate assistance*

Homes are Like Hotcakes in Western Washington

"What's available and that looks at least 'pretty good' is selling," according to MLS director Dick Beeson, principal managing broker at RE/MAX Professionals in Tacoma. Commenting on the latest MLS statistics, he said, "What we have in the Greater Puget Sound real estate market is too many buyers chasing too few homes." 

Right now, the market is full of anxious buyers and a low inventory. It has been this way now for a few solid months- specifically in Western Washington. 

What is the cause?

Loans are at an all time low in terms of interest rate, and buyers are able to qualify for a mortgage even if they don't have the classic 20% down funds. There are many programs such as USDA, VA and FHA mortgages that allow 0% or no more than 3.5% down on a home. 

While this is happening, sellers are still hesitant- which has created "slim pickings". However, these buyers are eager and excited to pursue homeownership and take advantage of low interest rates, so what ever is decent is selling.

What does this mean?

As summer picks up, and even more buyers are going to pursue their dream (summer is the biggest moving season), inventory may still drop and homes are still going to go like hot cakes. Property values are projected to continue rising and interest rates for home loans are expected to stay low. 

If you have been thinking of selling your home, right now is a great time. The market is on the seller side, and your home will be able to sell at a great price! It may be intimidating to enter the competitive buyer's market after doing so, but the upside to that situation is that you may be able to purchase your next home with a ridiculously low interest rate, and may even qualify for 0-3.5% down program.

My advice (sellers):

-Prep your home for the market. Complete small repairs, declutter, and touch up appeal.
-Talk to a local lender about your options after your home sells
-Contact a realtor for a comparative market analysis (these are usually free) to get an idea of a listing price
-List your home, and start packing, because it will probably sell fast!

*We just sold our farmhouse a few weeks ago. It was listed on a Friday, shown on a Saturday, and had a signed around offer on Monday evening. Take it from me as a Realtor and homeowner- it is a smart move to sell during this strange market condition!



Contact me for more information, or to help you list and sell your home:

Kimberly Linson, Realtor/Broker
John L. Scott Centralia
253-343-3385
kimberlylinson@johnlscott.com
www.facebook.com/kimberlylinsonJLS 
www.kimberlylinson.johnlscott.com 
*proudly serving Thurston, Pierce and Lewis county, but happy to assist anyone in Western Washington. 


Quote source: NW REporter, May 2015 NWMLS*

Washington's Best Kept Secret....

Did you know there are towns along I-5 that are rural, yet only 30 min away from the capital, and about an hour and a half from Seattle and Portland?

Did you know that in these towns, you can purchase a historic, well kept home for less than $200,000?

Check out Centralia and Chehalis- you will be amazed at the deals in the area!

CLICK HERE TO VIEW HOMES IN CHEHALIS, WA:
http://www.kimberlylinson.johnlscott.com/Homes-For-Sale/Chehalis/WA

CLICK HERE TO VIEW HOMES IN CENTRALIA, WA:
http://www.kimberlylinson.johnlscott.com/Homes-For-Sale/Centralia/WA

Do you know what happens at closing?

Not working with a Realtor to sell your home is a lot like going to court and representing yourself.... We specialize in this field and are here to make sure there are no big surprises. Here is a great article about one of the many ways a Realtor can help you: 

Potential homebuyers mostly unaware of closing costs but survey reveals Realtors are a "go-to" source for info

April 2015

Consumers - and particularly millennials and first-time homebuyers - tend to be unaware of closing costs. That knowledge gap means they may need to adjust their assumptions about how much house they can afford, according to findings in a new survey. 

It even means deals could unravel, the survey sponsors suggested. 

By a wide margin, the "ClosingCorp National Closing Costs Survey" showed most people learn about closing costs from Realtors, or by doing their own research. Researchers who analyzed the results reported millennial homebuyers (those in the 18-to-34-year-old age bracket) turn to Realtors for information on closing costs rather than lenders. In fact, they do so by a two-to-one margin.

ClosingCorp CEO Brian Benson expressed surprise at that finding, saying the study shows millennials are more dependent on Realtors than previously presumed. "We know they are more tech-savvy than their predecessors, so we believe this really highlights the complexity of a residential real estate transaction."

The ClosingCorp survey targeted 1,007 adults nationwide. Researchers reported about two-thirds of millennials who plan to buy are home were unaware of closing costs. They survey also revealed that across all adult age brackets, more than one-third of potential homeowners are "not very" or "not at all" aware of closing costs.

People need access to correct information, and it needs to be simple to understand, Benson emphasized, adding, "With the upcoming changes to the disclosure process being made by the Consumer Financial Protection Bureau this August, we as an industry should be stepping up our proactive education efforts to ensure homebuyers are fully prepared to make the most significant financial transaction of their lives."

In a statement about its survey, ClosingCorp noted the addition of costs for title insurance, lender origination fees, commissions and other settlement costs could mean a median-priced $202,600 home could end up costing more than $220,000 at closing.

"Not understanding how everything is related can be a real impediment for first-time homebuyers who want to get into the market," Benson stated.

"Much has been written about millennials because they are the largest generation so far in U.S. history, and their longstanding impact on the real estate market and economy is going to be huge," the ClosingCorp CEO remarked. "Their buying behaviors are much different than previous generations, and of particular concern to the industry is that they are waiting longer to buy their first homes. This study emphasizes the need to better educate millennials, and really all consumers in general, on the real estate closing process." 

ClosingCorp® owns and operates a leading source of intelligence for closing costs and service providers in the U.S. residential real estate industry. Last year the company introduced a tool called Seller Net Sheet which is designed to help real estate agents give sellers an estimate of how much they can expect to net at closing.

Source: NWMLS/NW REporter

http://nwreporter.nwmls.com/Issues/April-2015/page/Closing-Cost-Surprise

Great Home Additions on a Budget: Recycled Pallets

Wanting to add an accent wall to the bathroom? Or maybe you want some decorative pieces of furniture that blend well with your historic home? It is time to discover the joy of recycled pallets! These are easy to obtain: you can check with local warehouses, supply stores or craigslist/classified ads. Most of the time they are FREE.

This can also be a great way to gather the wood needed for a remodel project. As you can see, we have some pallets still in tact, and my husband broke down several into usable planks.

There are many projects and inspirations you can find online using pallets, and it is as easy as typing "projects using pallets" into your search engine.

Here are some direct links for project inspiration:
http://www.1001pallets.com/
http://thepalletproject.blogspot.ca/
http://www.remodelaholic.com/2013/03/diy-pallet-wood-wall-bathroom/

With a little bit of time invested, the possibilities are endless for home improvement while your cost is little to nothing!

We have made items such as benches, tables, accent furniture, storage chests, and decorative signs. We are currently making plans to use pallets for a bathroom revamp, a deck and possibly flooring over some outdated vinyl flooring.

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FHA, USDA: What is the difference?

Probably one of the most confusing parts about buying a home is the financial route you take. Many find themselves wondering:

Will I need a lot of money for a down payment?

If I qualify, what are my options?

What do all these loans and terms mean?

A conventional bank loan is a standard loan issued by a bank, that usually requires a down payment. However, the most common loans used buy home buyers (especially non-investors or first-timers) include the FHA and USDA programs. In fact, when my husband purchased our home a few years ago, the transaction was completed using USDA financing.

Usually, if you are able to qualify for an USDA home loan, you are also able to qualify for an FHA loan- and vice versa. Let's take a look at the details of each, to help you understand the difference and decide what may be your best route...


USDA (Rural Development Guaranteed Loan Program):

Run by the United State Department of Agriculture, this loan program's main purpose is to help buyers with a lower income achieve their dream of owning property. Although it targets consumers with low income, you still must be able to prove that you can pay a certain amount in a mortgage (monthly house payment) and have reliable credit. It does not require a down payment, and allows you to pursue a modest but stable home to own.

USDA loans are pretty strict, but I personally feel this is helpful for first-time buyers. Homes purchased with USDA financing must be resided in upon purchase (you cannot use this loan to purchase an additional/rental/income producing property), must be located in a small town or rural area, cannot have an income producing building on site (such as a barn that will be used for raising/selling livestock), must pass inspection and requires mortgage insurance for the beginning period of the loan.

For a full list of rules, click here: http://www.rurdev.usda.gov/supportdocuments/3550-1chapter05.pdf

As I mentioned, I feel that a USDA loan is for the most part hassle-free and a great option for a first-time buyer. It helps to protect you from unforseen troubles when jumping into the home ownership pool.

For more information on USDA loans, rates, and qulaifications click here:
http://www.usda.gov/wps/portal/usda/usdahome?navid=HOUSING_ASSISTA&navtype=RT&parentnav=RURAL_DEVELOPMENT


FHA (Federal Housing Administration Home Loan Program): 

Run by the United States Department of Urban Housing and Development, an FHA loan has a bit more flexibility than a USDA loan in terms of property, location and buildings on site. However, this loan requires a minimum down payment of about 3.5%. Those with credit scores between 500 and 579 must make down payments of at least 10 percent. This still is a lot more affordable than the down payment for a conventional loan, which has an average of about 20% for a down payment. 

This loan is also helpful for those with a lower income, but also can be an option for those with lower credit scores in comparison to USDA. As I mentioned, though, this route does require a down payment which can increase with a lower credit score. These are also a pretty secure route to take in purchasing a home as they require an appraisal, inspection, and mortgage insurance as well. 

For a helpful list of guidelines for properties purchased with FHA loans, click here: 
http://www.investopedia.com/articles/mortgages-real-estate/11/fha-minimum-property-standards.asp

This loan is also linked with HUD HOMES, which are forclosed/auction homes that are available at a great price, and are able to be purchased with FHA financing. In fact, those with FHA financing have priority over other types of financing during the bidding process.

For information on HUD HOMES, click here:
http://www.hudhomestore.com/Home/Index.aspx

*FHA news update, interesting article about how the government is cutting FHA loan costs:
http://www.bloomberg.com/news/2015-01-08/obama-cutting-fha-cost-boosts-first-time-buyers-builders.html

The main thing to do after gaining this knowledge is to talk to a lender in your area that others recommend. Now that you have a basis of different options, you can have the upper hand in the home buying process. I hope today's post was helpful for you, and I am always happy to answer further questions. Contact me by email: kimberlylinson@johnlscott.com