I am delighted to be spending a few weeks in Scotland, the home country of my wife with whom I am celebrating 25 years of marriage. So here is some info on renting out your vacation home!
Do you own a vacation rental? Maybe a cabin up at Mount Hood or a Beach House at the Coast? Are you thinking about owning one? Maybe renting it out when you are not using it via Air B&B or a similar service? Well this can be an effective way to lower the cost of ownership but it can also have some legitimate legal risk. I would consult and attorney be renting out such a house, that said the article below has some good insight into prepping for a dual purpose vacation home.
By Michele Lerner, Special To The Washington Post
Published: June 17, 2019, 6:04 AM
If you’re one of the lucky ones who own a vacation home — and you plan to rent it this summer or next year — you may want to follow up on a few suggestions from Marnie Oursler, owner of Marnie Custom Homes in Bethany Beach, Del., and host of DIY Network’s “Big Beach Builds” and HGTV’s “2018 Dream Home.”
Here are her ideas to make your vacation home more appealing to renters and to increase your peace of mind while renters are in residence:
1. Lock up personal items. We often build owners’ closets that can only be accessed with a key so owners can lock up anything they want to keep for their own personal use, such as linens, supplies, etc.
2. Remove sentimental items. Stow away photos, artwork, anything sentimental you do not want to get damaged. It keeps the house neutral for renters, and owners can easily add the items back when they are staying at the house.
3. Install a safe. By adding a fireproof and waterproof safe that fits between studs, either in the owner’s or master closet or in another area of the home that has limited access, you can ensure treasured items are safe, adding a little more peace of mind when renting.
4. Slipcover sofas. Often with renters, there are multiple families or guests in the same house, especially when getting together for cookouts or beach days. Wet bathing suits and sand easily find their way onto sofas and chairs, so by using slipcovers on the furniture, you can remove the covers and wash them as needed. Consider a white canvas/Sunbrella material that will look beachy and be easy to clean.
5. Add games. Having a pingpong table and/or corn hole in the garage or carport is another great way to utilize space and provide activities for rainy days, evenings or to get a break from the sun. The games are also a bonus amenity for renters.
Musings on the state of the market with tips, information and a little fun.
Friday, July 26, 2019
Friday, July 12, 2019
Urban condos see a spike in listings, will the sales follow?
I published this article on Urban Living in the 'Couv' Monday. Urban condos are a big part of my real estate marketing efforts and as such I take a special notice to market 'wind shifts'. I figured I be well to inform the readers here of what's happening Downtown.
Originally published in Urban Living in the 'Couv', July 8th, 2019, by Rod Sager
There is no shortage of units in Vancouver's urban condo market. New ones come active each week but nearly as many go pending or close as well. This is good activity. The days on market is dragging just a bit, but it seems sellers are starting out high on price and coming back to the market over a few months. Sellers pricing the units well from the start are seeing a quick sale.
You can see a spike in listings for June that outpaced the spike in closings. I'll be watching to see if the local market can absorb these new units in a reasonable time period. I think the listing spike likely came after sellers on the fence saw good activity in the spring and decided now is the time to sell. Summertime in Downtown is a lot more exciting than winter as the festivals, concerts and other fun stuff like the Farmer's Market is a big draw. The figures above are for condos in Downtown only so this does not include areas like Columbia Shores, Tidewater, or Shorewood.
The $500,000 to $750,000 price range is the only range that seems under-represented in terms of available inventory. Recent units in Viewpoint and Frontier in that range sold relatively fast and new inventory has not filled the void. Above $750,000 has ample inventory as does the entry level units like those found at the Academy Square and Parkview projects.
The waterfront project continues to build new developments, but the only condo project actually under construction is Kirkland Tower and those will be very high-end units mostly well above $1 million. Another proposed condo building is slated for Block 16, that is also right along the water so I am presuming those will be upper end units as well. That building however is proposed to have double the number of units as Kirkland so they may be priced in a lower range, yet likely still in the $750,000 plus market. That is just my best guess there is no real published data on the Block 16 project. The other residential projects going in are all apartments thus far.
The lack of actual condos on the waterfront could certainly be helping the condo market downtown as the area continues to see economic expansion and significant improvements to enhance the living experience. The success of the various apartment buildings such as Rediviva and Riverwest, both complete and available now, could spark developers to roll the dice on condo projects along the new waterfront. These two apartment projects feature units with rents from $1,800 to $4,000 per month and there are a total of 280 units. Income required to support $3,000-$4,000 in rent is good enough to support a condo well above $500,000.
I believe the condo projects proposed and planned for the waterfront are taking a wait and see stance to monitor the success at Rediviva and Riverwest before committing to expensive condo projects.
The City of Vancouver and Gramor need to focus on bringing some high paying employers into the downtown, waterfront, and Port of Vancouver to help support more residential development, while the economy is still strong. Jobs are very important and there are plenty of companies looking to expand in and/or into our region. The waterfront project will be easy to fill with people should we add another 5,000 good paying jobs close in. Nobody save for the occasional traffic masochist, likes crossing the bridges to work.
Things are solid on the Vancouver Urban Living scene.
Originally published in Urban Living in the 'Couv', July 8th, 2019, by Rod Sager
There is no shortage of units in Vancouver's urban condo market. New ones come active each week but nearly as many go pending or close as well. This is good activity. The days on market is dragging just a bit, but it seems sellers are starting out high on price and coming back to the market over a few months. Sellers pricing the units well from the start are seeing a quick sale.
You can see a spike in listings for June that outpaced the spike in closings. I'll be watching to see if the local market can absorb these new units in a reasonable time period. I think the listing spike likely came after sellers on the fence saw good activity in the spring and decided now is the time to sell. Summertime in Downtown is a lot more exciting than winter as the festivals, concerts and other fun stuff like the Farmer's Market is a big draw. The figures above are for condos in Downtown only so this does not include areas like Columbia Shores, Tidewater, or Shorewood.
The $500,000 to $750,000 price range is the only range that seems under-represented in terms of available inventory. Recent units in Viewpoint and Frontier in that range sold relatively fast and new inventory has not filled the void. Above $750,000 has ample inventory as does the entry level units like those found at the Academy Square and Parkview projects.
The waterfront project continues to build new developments, but the only condo project actually under construction is Kirkland Tower and those will be very high-end units mostly well above $1 million. Another proposed condo building is slated for Block 16, that is also right along the water so I am presuming those will be upper end units as well. That building however is proposed to have double the number of units as Kirkland so they may be priced in a lower range, yet likely still in the $750,000 plus market. That is just my best guess there is no real published data on the Block 16 project. The other residential projects going in are all apartments thus far.
The lack of actual condos on the waterfront could certainly be helping the condo market downtown as the area continues to see economic expansion and significant improvements to enhance the living experience. The success of the various apartment buildings such as Rediviva and Riverwest, both complete and available now, could spark developers to roll the dice on condo projects along the new waterfront. These two apartment projects feature units with rents from $1,800 to $4,000 per month and there are a total of 280 units. Income required to support $3,000-$4,000 in rent is good enough to support a condo well above $500,000.
I believe the condo projects proposed and planned for the waterfront are taking a wait and see stance to monitor the success at Rediviva and Riverwest before committing to expensive condo projects.
The City of Vancouver and Gramor need to focus on bringing some high paying employers into the downtown, waterfront, and Port of Vancouver to help support more residential development, while the economy is still strong. Jobs are very important and there are plenty of companies looking to expand in and/or into our region. The waterfront project will be easy to fill with people should we add another 5,000 good paying jobs close in. Nobody save for the occasional traffic masochist, likes crossing the bridges to work.
Things are solid on the Vancouver Urban Living scene.
Friday, June 28, 2019
Instant Buyers?
The latest in real estate are these so-called "instant buyer" programs from companies like 'Open Door'. I find it fascinating how this concept is tracking beyond the 'I have to sell fast' crowd. It is important for a home owner to understand that an investor takes on a great deal of risk when they buy a house with the intent to resell at a profit. This will come at the seller's expense.
I am genuinely shocked to see a rise in this kind of business. again, they serve a purpose for someone that has to sell quickly for whatever reason, new job far away, death in the family, etc. Sellers that are simply motivated by the ease and convenience of not having people look at their home are giving up a large sum of money for that convenience. Some may feel like they are getting a better deal through the "instant buyer" programs, that is highly unlikely especially in Washington State.
When a house is sold the State of Washington collects an excise tax of 1.78% from the seller. If the buyer is planning to resell the home in the near future, which is the intent of most operators of the instant buyer concept, they assume all the market risk and will have to pay that 1.78% excise tax again. Many of these programs have a 30 day closing and during that time they often attempt to sell the contract to purchase to a third party, thus gaining a fee and no exposure to market risk or costs to resell. All of this comes at the expense of the seller.
In order for the instant buyer to work for the buyer they need to acquire the home at a price at the very least 5% under market. They typically levee a fee of 5% to the seller and then the extra 5% would cover selling expenses should they be unable to sell the original contract to a third party. Few people with the resources to pay cash for any quantity of homes would be willing to do so with such a tiny profit margin.
My experience is that they acquire the rights to buy at more like 15% under market. Why on Earth would a seller not under any duress to sell, want to do that? A traditional real estate arrangement will be much better for the seller. These instant buyer or sell guarantee offers are geared to protect the buyer, NOT the seller. The fall back guarantee price will likely be well under actual market value.
Sellers can negotiate with listing agents in Washington State. If money is tight then negotiate a lower fee. Sometimes if the property is desirable, realtors® will compete for listing and the seller could easily make $10-20 thousand MORE than these "easy" instant buyer deals. Yes, the seller will have to clean the house and allow agents to bring buyers in for a tour. Seriously though, if you own a $300,000 house it is unlikely you make enough money to turn your nose up at $20 grand for what amounts to a little bit of inconvenience!
Seller beware, these "guaranteed deals" often do not pass the sniff test.
I am genuinely shocked to see a rise in this kind of business. again, they serve a purpose for someone that has to sell quickly for whatever reason, new job far away, death in the family, etc. Sellers that are simply motivated by the ease and convenience of not having people look at their home are giving up a large sum of money for that convenience. Some may feel like they are getting a better deal through the "instant buyer" programs, that is highly unlikely especially in Washington State.
When a house is sold the State of Washington collects an excise tax of 1.78% from the seller. If the buyer is planning to resell the home in the near future, which is the intent of most operators of the instant buyer concept, they assume all the market risk and will have to pay that 1.78% excise tax again. Many of these programs have a 30 day closing and during that time they often attempt to sell the contract to purchase to a third party, thus gaining a fee and no exposure to market risk or costs to resell. All of this comes at the expense of the seller.
In order for the instant buyer to work for the buyer they need to acquire the home at a price at the very least 5% under market. They typically levee a fee of 5% to the seller and then the extra 5% would cover selling expenses should they be unable to sell the original contract to a third party. Few people with the resources to pay cash for any quantity of homes would be willing to do so with such a tiny profit margin.
My experience is that they acquire the rights to buy at more like 15% under market. Why on Earth would a seller not under any duress to sell, want to do that? A traditional real estate arrangement will be much better for the seller. These instant buyer or sell guarantee offers are geared to protect the buyer, NOT the seller. The fall back guarantee price will likely be well under actual market value.
Sellers can negotiate with listing agents in Washington State. If money is tight then negotiate a lower fee. Sometimes if the property is desirable, realtors® will compete for listing and the seller could easily make $10-20 thousand MORE than these "easy" instant buyer deals. Yes, the seller will have to clean the house and allow agents to bring buyers in for a tour. Seriously though, if you own a $300,000 house it is unlikely you make enough money to turn your nose up at $20 grand for what amounts to a little bit of inconvenience!
Seller beware, these "guaranteed deals" often do not pass the sniff test.
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