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Gavin’s HOUSING HIGHLIGHTS
DECEMBER 2024
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STAND OUT IN A CROWDED MARKET
Seller Incentives That Attract Buyers and Win Offers
Today’s home buyers have a lot to consider, which means as a seller, we need to find ways to make them choose our property over the competition. Buying a home for most people who get to do so is usually one of, if not the largest, financial investments/purchases they ever make in their lives. Tensions are high, and we all want our hard-earned money to go as far as possible. Along with this exhilarating (and often stressful) decision buyers get to make, they are also more than likely restructuring their household budgets to handle higher payments than they are used to. In addition to these challenges, did you know in 2024 that roughly 1 in every 3 home purchases are new construction? Many sellers are competing directly with new construction for the same buyers. As of the end of 2024, there is not one production builder in Tri-Cities that is not offering some sort of seller-paid closing costs incentive. Considering the challenging environment today’s buyer faces and the increase in competition as a seller, it’s important for you and your Realtor to discuss how you can stand out from the competition. Covering Closing Costs In the state of Washington, buyer closing costs typically range between 2%–3% of the home’s sale price. For a $500,000 home, this would mean the buyer pays an additional $11-13,000 out of pocket on top of their down payment. These closing costs consist of loan fees, title fees, prorated taxes, insurance, HOA fees, etc. In this market, more often than not, the buyer is even paying an additional percentage on top of this amount toward buying down the interest rate so they can try to swallow the payment. Buyers can buy down the interest rate permanently or temporarily. Permanently, it is more costly and has less of an effect on the monthly payment but can sometimes give the buyer that sense of peace that the rate will never be more than ‘X.’ Temporarily is something that has more of a dramatic effect on the buyer’s payment but is, of course, temporary. Please note that only the seller can temporarily buy down the buyer’s rate! Offering all or a portion of closing costs for the buyer is probably the most attractive incentive for the average buyer since the change in loan amount is so much less impactful from a monthly or down payment standpoint. Let’s touch on a few others. ‘Inclusions/Exclusions’ If you’ve written an offer to purchase a property with me, you know there is more to negotiate besides the price tag. Sure, the bottom
line holds the greatest weight for everyone; however, what about when you or the other property just needs a place for their goats to stay while they move their belongings? Seriously. How about the decked-out workbench/storage system in the garage? Does that stay, or do you plan to leave that? Of course not. Seriously though, have you been like me and lived out of your Yeti cooler for a couple of weeks? People need stuff: appliances like refrigerators, washers, dryers, water softeners, patio furniture, and even the chickens in the chicken coop can go a long way! Items that make the home more move-in-ready, add to the style and character, or that are just downright necessary, like a riding lawn mower, can go a long way. Take time to strategize what you are including and what you are and are not willing to negotiate. Marketing Do you believe your home would sell for a fixed price, or do you believe your home could probably sell within a range of value based on the marketing plan and skills of your Realtor? If you’ve been a home buyer before, you would probably agree there is a range of value your home could sell for, just like any other home. Why do I provide things like professional staging, professional photography, and various print, social media, and direct marketing services for my clients? Because this stuff works, and the majority of listings try to ‘get by’ without investing the time and money.
—Gavin Vargas
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PREPARE TO SELL
The Advantages of Pre-Inspections for Home Sellers
Whether you are looking to sell a home or buy one, it can be helpful to know whether or not there are any hidden problems, surprises, or concerns to worry about before making or accepting an offer. I help my clients utilize pre-inspections to save time, avoid headaches, and help make or save them money depending upon whether or not they are on the buy or sell side. For a buyer, when a property offers a pre-inspection, we are able to craft a more custom offer that is more attractive to the seller while also ensuring the buyer is able to conduct their own due diligence and avoid surprises before and after closing. For the seller, we utilize pre-inspections to be proactive and also help buyers feel more confident, resulting in stronger offers and smoother transactions. Peace of Mind When buyers are looking to purchase a home, the last thing they (or the seller) want is to run into unexpected hurdles during
the home inspection. When the seller can show a full 25, 30-plus page report from a licensed and reputable third-party home inspector, the buyers can hopefully take a sigh of relief when they see there are no significant or detrimental issues with the property that would make this dream turn into a nightmare. Along with this, if the seller chooses to respond to any of these items noted by the inspector and can provide invoices, explanations, warranty paperwork, or even something as simple as the name of the tool, product, material, or company used, this can help the buyer gain a better grasp on the item and move forward from a level-headed perspective. Time to Fix Potential Problems On the sell side, there is a risk to pre- inspections. Everything noted by the inspector is automatically considered common knowledge for the seller, and the seller cannot pretend to have no knowledge of a major problem or defect
if one is found. It’s uncommon and unfortunate but it does happen, and it’s almost always better to know before listing or entering into a contract because, more than likely, it comes up eventually. The results from the pre-inspection can help you select a listing price more appropriate for the property based on the condition and level of work you are willing or choose to do. The work you may choose to do in response to this pre-inspection is completely your decision and I cannot encourage you enough to consult with your Realtor on what it is you choose to address. I want you to be able to use this as a tool to help you earn more and prepare for a smoother, expedited transaction. Other tools that pair well with a pre- inspection may consist of a home warranty, a list of service maintenance records for the home, a handyman, and other various professional vendors I can offer. Reach out anytime for more!
Keys to a Cozy Book Nook A GUIDE TO THE PERFECT READING PARADISE
Is your home where the hectic is? Crave a place in your house where you or your loved one can find peace with a great paperback and a comfy couch? Well, it may be time to build a book nook! Book nooks can range from cozy, modest spots to mini in-house libraries complete with shelving and large furniture. Whichever direction you take to create your special place for reading and relaxation, a few tried- and-true tips will help transform your corner into a tranquil sanctuary. Perk up your page-turning. Although the sight of someone going cover to cover in a dingy dungeon may work in a horror film, it’s the wrong way to keep your eyes open and your senses alert. A book nook should be a place for rejuvenation, so keep your space illuminated and lively. Natural light will always work best, but a
strategically placed lamp will also do the trick. The goal is to give your eyes a break — not another way to strain them.
Shape where you sit. Remember those tiny — and hard —
wooden seats we endured most of the day when we were kids at school? Well, there’s a good chance your kids still spend plenty of time on them in school! To build the perfect book nook for younger readers, furnish it with softness: a cozy chair with an ottoman or couch with lots of pillows and a blanket nearby. Naturally, adults shouldn’t skimp on comfort, either — your body deserves a break after all those hours spent in the car, behind a desk, or on your feet. Let your creativity flag fly! In addition to providing children with a place to read for pleasure, book nooks can open the door to their creative sides.
Encourage them to be little art directors and personalize their spaces with their favorite colors and images. Who knows? Maybe the walls could be the perfect gallery for their drawings! Helping to make your child’s nook a pleasant destination will help them find joy in reading. Of course, the same philosophy should also apply to adults who need a good nook. Like the act of reading itself, creating
a literary safe space presents endless possibilities for fun and fulfillment.
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Glowing Reviews for Gavin
fiscally or, in a competitive market, allow the buyer to stand out as the best overall offer/party for the seller to work with. This agreement allows the seller extra time to pack, move their belongings, or even free up their next residence to be moved into, wherever that is. Another benefit for the seller is that they are able to access their proceeds from the sale to assist with paying for the costs of moving and whatever else they might like to tackle or even just feel more confident about packing and moving the place they call home. Many sellers who just want to get a head start will even list their homes before finding their next ones. When we go under contract, we can negotiate extra time after closing for the seller to occupy, giving the sellers a little cushion to find and secure their next home. I’ve had the pleasure of helping several of these proactive clients find the right home while their home is already under contract, allowing them to earn better terms on their purchase. For the buyer, besides potential additional compensation or winning in a multiple-offer scenario, this tool may allow them to earn a better price or even be an added convenience for them, say if they are unable to occupy the property immediately after closing due to relocation logistics or family/work etc. obligations. There are many ways rent-back agreements can help both parties reach an agreement. “Gavin continues to deliver excellent results for us. I am grateful he has been our Realtor for the last few homes we have purchased. He always pays attention to the details, has great communication, and thinks creatively to get the job done.” - Michael “Gavin did a wonderful job for us and was always available if we had a question for him. He even responded when he was on vacation! Customer service is so important, and we felt like we got that from Gavin. Wishing him all the best in life as he moves ahead with his Windermere Group! Thank you.” - Jeanne and Mike S.
A Smart Solution for Sellers? RENT-BACK AGREEMENTS One of, if not the most, underestimated negotiation points in a real estate contract is your closing and possession dates. Sometimes, I would even argue the closing and possession dates have a more weighted impact on the deal than the purchase price itself. You’ve likely heard at least a version or similar quote to Jim Rhon’s, “Time is more valuable than money. You can get more money, but you cannot get more time.” Of course, this doesn’t mean we ought to skip work on Monday and start off by meeting for Mimosas and see where that takes us; however, I do think this is something we need to be conscious of both on the buy and sell side of a real estate transaction, respectively. What are rent-back agreements? One way we can leverage the value of time over money is through rent-back agreements or what we call Seller Occupancy Post Closing. In this situation, buyer and seller agree prior to closing, usually at the time of contract, that the seller will occupy the property for a set period of time after closing as the then ‘tenant,’ and the buyer, who will then legally own the property at that time, will step into the role of lessor/landlord. As your Realtor, I help you negotiate the terms of this agreement to empower you to earn the best overall contract terms possible while also providing incentives for the other party through additional time or compensation. Also important to note as the buyer: If this rental agreement period is fewer than 90 days after the closing date, this agreement is exempt from the Residential Landlord-tenant Act, further protecting the buyer/landlord. What are the benefits? There are several potential benefits to a rent-back agreement for both buyers and sellers. This type of agreement is more often a huge added convenience for the seller, which in turn can compensate the buyer
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2 1 INSIDE
Incentives to Help Sell Your Home
How Pre-Inspections Can Boost Buyer Confidence
Literary Lounges for Family Relaxation
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Benefits of Rent-Back Agreements
Glowing Reviews for Gavin
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Mix, Measure, and Make Memories
Festive Kitchen Adventures — Kid Edition
WHISKING UP FAMILY FUN
Could your child be a future celebrity chef? Could your baby be a world-class baker in waiting? Help transform your toddlers or school-age kids into tiny tastemakers by following these three simple tips. Use your space as a skill zone. It takes more than just a love of food to make delicious meals and treats, as cooking and baking put all five senses to the test. Helping in the kitchen enables small children to heighten their awareness of smells, tastes, sounds, and textures while learning new words. Having them measure ingredients and pour them into bowls is an easy way to refine their motor skills, and your guidance behind the counter will encourage them to follow directions. If your kitchen companion is a baby, you can still involve them by describing the sights, sounds, and smells surrounding them and letting them touch
some of the food — all great tools to assist in developing their connection to the world.
Kid-proof your meal prep. Before taking your child on a culinary journey, check that their countertop travels won’t endanger them. It’s obviously a big no-no to rest a sharp knife on a cutting board that small hands can reach, but little things like toothpicks can also pose a risk. If your small assistant is old enough to cut up ingredients, a plastic utensil will be less painful than steel if the blade misses its mark. Keep family flavors flowing. Want to give your elderly mom or dad a holiday surprise they’ll never forget? Present them with a meal based on one of their famous recipes that their grandkid(s) helped prepare! Holiday gatherings are
great for sharing the details and delicacies that shaped your family’s history — and a wonderful opportunity to pass down those special traditions to the next generation. With the holidays upon us, now is a perfect time to introduce little ones to the joys of baking and cooking by turning your kitchen into a safe space for learning and bonding.
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