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The Tulip Dance
What once was a boring parking lot has become transformed into a peaceful River Walk. This is your opportunity to walk along the Skagit River in Downtown Mount Vernon. Located in historic downtown Mount Vernon between Gates Street, First Street, Myrtle Street and the Skagit river, this park encompasses 30,000 square feet of riverfront making for the perfect walk along the water. While secured with a permanent floodwall, over the years has become a beautiful outdoor art gallery perfect for perusing or place for a picnic.
The Tulip Dance:
As you walk the plaza you will discover lovely art structures. For example, pictured is the “Tulip Dance”. This piece was created by husband and wife team, David Feri and Jennifer Corio to honor the Skagit Valley Tulip Festival. The oversized metal tulips stand over 14 feet tall and are a combination of both steel and aluminum with a powder coated finish. The beautiful piece was donated to the city by the Blackburn family.
Click here to learn more about Mount Vernon. Thinking about moving to Skagit Valley? Connect with us.
Have You Considered New Construction?
Have you considered new construction? If not, here are several reasons why you should expand your search criteria to include new construction homes.
Buying from a builder is certainly different from buying from a home seller. Builder contracts can be challenging. This alone might have you a bit hesitant to consider a new construction home. Just remember, when purchasing your home your realtor will assist you throughout the entire process whether you are purchasing an existing home or a new build.
If you have not yet partnered with a local real estate expert, connect with us.
Here’s why you should considered a new construction home:
Considering a new construction home increases your pool of opportunity. Sometimes, buying a new construction home allows you to have a say in creating the home of your dreams. Better yet, you can often get new construction home with reduced rates. Follow along as we discuss each of these benefits of purchasing a new construction home further.
The new construction market increases your pool of opportunity:
On a positive note, we are experiencing a slight increase in inventory of existing homes for sale. However, when compared to historically standard numbers of homes for sale, such as in 2018 and 2019 inventory of existing homes today is still low. Low inventory can leave buyers feeling as if they have exhausted all their options. When this happens, buyers may feel as if buying a home is just out of their reach. If you are finding yourself feeling this way, have you considered new construction? New construction has begun to see an uptick providing buyers a huge opportunity. If you are in search of a turn-key home or you want the ability to customize your own home, you have more options right now. Not only do you have more options, but many builders are offering lower rates. Keep reading to find out why.
You have a say in creating the home of your dreams:
Purchasing a new construction home offers the unique opportunity to customize and tailor the property. Customization allows the home to fit your specific needs and preferences. Unlike buying an existing home where you may need to compromise on certain features, sometimes new construction allows you to make decisions on everything from the layout and floor plan to the finishes and fixtures. This level of customization ensures that the home truly reflects your personal style and requirements. Are you ready to create a space that feels like yours from the moment you move in? Additionally, being involved in the construction process allows you to incorporate modern design trends, energy-efficient features, and the latest technology, ensuring that your home meets both your current and future needs. Overall, the ability to customize a new construction home offers unparalleled advantages in creating a living space that perfectly suits your lifestyle and preferences.
Be sure to refer to your agent who can assist you on determining the quality of construction. Keep in mind your local agent has knowledge of local builders reputations. They can help you review and negotiate your contract to help you get the best terms. As an added bonus, they can walk you through which customizations and upgrades will benefit you most not only as an owner but also to help get you the best return on investment if you ever decide to sell in the future.
Don’t have an agent? Connect with us to get paired with one here.
New construction builds can come with reduced rates:
If you weren’t convinced that you should consider new construction already, you will be when you learn that some builders who have already broke ground on construction offer incentives to help buyers be able to afford a new construction. Keep reading to find out why and explore some of the options.
The simple truth is, the longer a new construction home sits on the market the more it costs the builder. Builders are eager to sell you the home because they are not living in it. First American’s Chief Economist, Mark Fleming explains:
“Builders aren’t rate locked-in. They would love to sell you the home because they’re not living in it. It costs money not to sell the home. And many of the public home builders have said in their earnings calls that they are not going to be pulling back on incentives, especially the mortgage rate buydown, so that will help the new-home market continue to perform well in the spring home-buying season.”
One of the most popular incentives we are seeing with builders are rate buy-downs. You might be wondering what a rate-buydown is and how it impacts you as a buyer.
A rate buydown is a real estate financing strategy used to lower the initial interest rate on a mortgage loan for a certain period. This is typically done by paying additional upfront fees to the lender. These fees are often referred to as “points”. Each point purchased reduces the interest rate.
There are two main types of rate buydowns:
- Temporary Buydown: With this type of buydown, typically the borrower pays additional upfront fees to the lender. In this case, the builder would on behalf of the borrower. These fees are used to subsidize the mortgage payments during the initial years of the loan term. For example, in a 2-1 buydown, the interest rate is reduced by 2% in the first year, 1% in the second year, and then returns to the original rate for the remainder of the loan term.
- Permanent Buydown: In a permanent buydown, typically the borrower pays additional upfront fees to permanently reduce the interest rate over the entire loan term. In this case, the builder would pay on behalf of the borrower. This results in lower monthly mortgage payments throughout the life of the loan.
Overall, rate buydowns can be beneficial for borrowers who want to lower their initial mortgage payments, qualify for a larger loan amount, or afford a higher-priced home. However, it’s important for borrowers to carefully evaluate the costs and benefits of a rate buydown to determine if it aligns with their financial goals and long-term plans.
If you have questions or are considering opening up your search to include new construction and would like to partner with one of our agents please do not hesitate to connect with us.
Down payment? You’ve got options
If you are considering purchasing a home, it is likely that you have heard that you will need a down payment. If you are a first time home buyer, you might not fully understand your down payment options. We have connected with Michelle Schmidt from Movement Mortgage who has provided information to help you better understand. Keep reading for an explanation of down payments and your options as a buyer.
A down payment is an initial, partial payment made upfront when purchasing a home. It’s expressed as a percentage of the total purchase price, with the remaining amount financed through a loan.
Here’s a breakdown of down payments:
Function:
- Reduces the amount you need to borrow.
- Signals to the seller your seriousness about the purchase.
- Influences your loan terms, like interest rates and mortgage insurance.
Typical amounts:
- Homes: Usually between 3% and 20%, with 20% being ideal for avoiding private mortgage insurance (PMI). Not sure what PMI is, connect with us we will help you better understand.
Factors to consider:
- Budget: How much can you comfortably afford to put down without impacting other financial goals?
- Loan type: Some mortgages, like FHA loans, have lower minimum down payment requirements. Be sure to discuss which loan is right for you with your trusted lender.
- Credit score: A higher score may qualify you for better loan terms, even with a lower down payment.
Benefits of a larger down payment:
- Lower monthly payments: You borrow less, so your payments are smaller.
- Lower interest rate: Lenders see you as a less risky borrower and may offer a lower rate.
- Build equity faster: You own a larger portion of the property from the start.
Downsides of a large down payment:
- Less available cash: You have less money for other needs or investments.
- May delay purchase: Saving a large down payment can take time.
Some lenders, like Movement Mortgage offer down payment assistance programs for buyers who need a little extra help. Connect and see if it is a good option for you.
Feel free to ask if you have any specific questions about them or need help calculating how much you might need for a particular purchase.
If you are not currently working with a Realtor and would like to connect, reach out to us here.
The Skagit Tulip Festival
Are you ready for an enchanting annual event that blankets the Skagit Valley in vibrant colors? Every spring, the expansive fields in Skagit Valley burst into bloom with millions of tulips, creating a floral wonderland that draws visitors from near and far. The Skagit Valley Tulip Festival celebrates the breathtaking beauty of these blossoms, inviting attendees to meander through the meticulously arranged rows of tulips, capturing the essence of nature’s artistry. With Mount Baker as a majestic backdrop, the scene is nothing short of breathtaking, and the vivid hues of red, yellow, purple, and pink provide an awe-inspiring experience for all who attend. Beyond the fields, the festival features the Tulip Festival Street Fair in Downtown Mount Vernon, live music, food vendors, and a range of family-friendly activities, creating a joyful and festive atmosphere that showcases the splendor of the Pacific Northwest’s springtime charm. Ready to jump in the car and go? Check the interactive map here to see where the tulips are blooming. Interested in learning more about tulips? Discover bloom information including the lifecycle of tulips here.
Ready to make Skagit Valley your home? Connect with us.
A Modern Masterpiece with Incomparable Views
A modern masterpiece with incomparable views can now be found in the charming town of La Conner. It could be yours. This truly extraordinary home redefines luxury living. Found atop 502 High Street, this exceptional property stands out from the rest. Keep reading to discover the multitude of reasons that make it a coveted gem in the area.
Own both the home and the land
First and foremost, unlike many homes in La Conner that are situated on leased land, this residence is fee simple. This means homeowners experience peace of mind and security by owning both the home and the land. This distinction sets it apart as a rare find in the community, adding an extra layer of value and desirability.
Award-winning local builder
Designed and crafted by the renowned, award-winning local builder, BYK Construction. They believe that “everyone deserves the peace of mind knowing they come home to quality”, as is demonstrated throughout this luxurious home. This home showcases the epitome of modern architectural excellence. Boasting sleek lines, contemporary finishes, and thoughtful design elements, it stands as a testament to superior craftsmanship and attention to detail.
Breathtaking panoramic views
One of the most captivating features of this home is its breathtaking panoramic views. From the expansive windows and outdoor living spaces, residents can enjoy sweeping vistas of quilted farmlands, majestic Mt. Baker, the rugged beauty of the Cascade Mountains, and the sparkling waters of the Salish Sea. Whether basking in the warm glow of sunrise or witnessing the vibrant hues of sunset, every moment in this home is accompanied by nature’s ever-changing masterpiece. Can you imagine yourself waking to fields bursting with color during the daffodil and tulip festivals showcased by the magnificent mountains in the distance? If so, schedule your personal showing of this home now.
Incredible design
Inside, the interiors are equally impressive. Architecture that blends form and function seamlessly to create an atmosphere of refined elegance and comfort. High ceilings, open concept living areas, and luxurious amenities are thoughtfully integrated to enhance daily living and entertaining alike. From the gourmet chef’s kitchen and sumptuous master suite to the inviting living spaces and stylish design elements, every aspect of this home exudes sophistication.
Luxury lifestyle
Beyond its impeccable design and stunning views, this residence offers a lifestyle of unparalleled luxury and convenience. Whether indulging in outdoor adventures, exploring the vibrant local arts scene, or simply relaxing in the tranquility of nature, residents will find endless opportunities for enrichment and enjoyment right at their doorstep.
502 High Street, La Conner represents a rare opportunity to experience the best of modern luxury living in one of Washington’s most picturesque locations. With its exceptional design, breathtaking views, and unparalleled quality, this home is more than just a place to live – it’s a place to thrive. Don’t miss your chance to make this extraordinary property your own and experience the ultimate in Pacific Northwest living.
Are you interested in scheduling a tour of this incredible home? Connect with us here to schedule your personal viewing.
Listed by: Colleen Craig and Julie Birkle
Discount Points Explained
If you are considering purchasing a home, it is likely that you may have heard the term discount points. It is also likely that you might not fully understand what they are, how they are used, or if they are right for you. Michelle Schmidt from Movement Mortgage has provided information to help you better understand. Keep reading for discount points explained.
Discount points, also known as mortgage points or simply points, are a type of prepaid interest that borrowers can purchase to lower the interest rate on their subsequent monthly payments. In simpler terms, it’s like spending more upfront to pay less over the term of your mortgage.
Here’s how it works:
- Each point typically costs 1% of the total loan amount. So, for a $400,000 loan, one point would cost $4,000.
- Paying for points reduces the interest rate on your loan. For example, paying one point on a $400,000 loan with a 6.75% interest rate might lower the rate to 6.25% a saving of $156 per month. The $4000 upfront cost divided by the saving of $156 would take approx. 26 months to recoup the initial expense.
- The lower interest rate translates to lower monthly payments. Over the life of the loan, you could save thousands of dollars in interest.
Here are some things to keep in mind about discount points:
- They are not always a good deal. It only makes sense to buy points if you plan on keeping your loan for an extended period of time. Otherwise, you may not recoup the upfront cost of the points in lower interest payments. You can also negotiate with the seller to pay your points and or closing costs.
- You can’t deduct discount points from your taxes unless you itemize your deductions.
These are additional resources that you may find helpful:
- NerdWallet: https://www.nerdwallet.com/article/mortgages/discount-points
- Consumer Financial Protection Bureau: https://www.consumerfinance.gov/consumer-tools/mortgages/
It is important to connect with a trusted lender and realtor that can help you determine if discount points are right for you. They will take into consideration your unique financial situation and your goals to develop the ideal approach. If you are not currently working with a realtor, connect with us.
Skagit Daffodil Festival
Over 450 acres of daffodils begin to bloom in Skagit Valley during the month of March. An annual celebration that heralds the arrival of spring with an explosion of golden blooms. Each year, as winter fades, the daffodils burst forth in brilliant hues, blanketing the valley in a vibrant carpet of yellow. The Skagit Daffodil Festival that takes place in La Conner showcases nature’s beauty and resilience, as these cheerful flowers bring hope and warmth to the hearts of all who attend.
Visitors from near and far are treated to a stunning display of daffodil fields, with the backdrop of the North Cascades lending an enchanting touch. The festival’s parades, events, and activities unite the community in the spirit of this bright and blossoming season, creating lasting memories and a sense of shared wonder. It’s a time when Skagit County truly shines, offering a warm welcome to spring and reminding all who come that the Pacific Northwest is home to not only breathtaking natural landscapes but also vibrant celebrations of life.
To learn more about the festival and discover fun facts about these amazing flowers Click here.
Visit the Skagit Daffodil Festival fields:
Return to this map to see which fields are blooming. The map is updated daily. (Provided by Visit Skagit Valley Washington)
Love Skagit Valley so much you are interested in making Skagit Valley your forever home? Connect with us.
Spring Cleaning
The warmer months are approaching here in the pacific northwest. Warmer weather means it is time to gear up for spring cleaning and maintenance. Regardless of whether you rent or own, a clean home not only offers a fresh start, but also enhances the comfort and enjoyment of your living space. A clean and organized home is more comfortable and enjoyable to live in. By decluttering, tidying up, and refreshing your living space, you can create a more inviting atmosphere. Whether you are tackling tasks indoors or outdoors, here’s a checklist to guide your efforts and ensure efficiency.
Indoors:
Check Your Attic:
Before the summer heat sets in, inspect your attic for sufficient insulation, signs of pests, and any potential roof leaks.
Schedule HVAC Maintenance:
Ensure optimal performance and energy efficiency by scheduling annual tune-ups for your heating and cooling systems.
Clean and Repair Window Screens:
Get ready to welcome the fresh air by repairing or replacing damaged window screens.
Clean (especially the Ceiling Fans):
Dust, allergens, and other pollutants can accumulate over the winter months, reducing your indoor air quality. Improve your indoor air quality by dusting, vacuuming, and cleaning surfaces, to remove these contaminants and create a healthier living environment. Don’t forget, you can quickly improve air circulation and energy efficiency by simply giving your ceiling fans a thorough cleaning.
Apply Weather Stripping:
Seal gaps around windows, doors, and exhaust fans to keep cool air in, hot air out, and prevent the creepy crawlers from making their way into your home.
Outdoors:
Check for Damaged Roof Shingles:
If you are not in a place to pay a professional or get on your roof yourself, use binoculars or a drone to inspect your roof for any curling, broken, or missing shingles.
Wash the Exterior:
A great way to extend the life of your exterior paint and enhance curb appeal is to wash the siding with a stiff brush and water.
Search Out Rotten Wood:
Identify and address areas of rot on both siding and trim to prevent further damage that could end up quite costly if left unaddressed.
Clean the Gutters:
Prevent overflow and flooding by cleaning out your gutters and downspouts. Don’t want to do it yourself? Hire a professional to. Don’t know one? Connect with us and we can provide you several suggestions.
Prepare Your Lawn to Grow:
Rake away dead grass, aerate the lawn, reseed bare spots, and apply spring fertilizer to promote healthy growth.
By tackling these spring cleaning and maintenance tasks, you will ensure your home is ready to shine inside and out, making the most of the beautiful seasons ahead here in the pacific northwest. Remember, if you are a homeowner, regular maintenance and cleaning can help preserve the condition of your home and prevent deterioration. This can contribute to maintaining or even increasing your home’s value over time, which is beneficial when you decide to sell.
If you are considering selling, connect with us. We can help you determine a task list of importance.
If you need motivation, check out our Spring Cleaning Spotify Playlist Here.
Changes to Washington State Agency Law
Washington State just completed an overhaul of its real estate agency law (RCW 18.86) which came into effect January 1st, 2024. This was the most substantial revision since its inception in 1997 and it addresses the ever-evolving real estate brokerage landscape. Part of the law mandates delivery of the Real Estate Brokerage in Washington pamphlet which you will receive in conjunction with this Buyers Guide. This pamphlet has been updated to make understanding agency law easier for consumers and introduces enhanced safeguards and transparency for both buyers and sellers in Washington State.
To understand the impact of these changes, let’s rewind a bit and take a look at the history of agency law. Prior to 1997 Washington brokers exclusively represented sellers, leaving buyers without dedicated representation. In 1997 the Law of Agency was introduced which allowed brokers to extend representation to buyers, although without any mandatory agreement outlining the broker-buyer relationship – only sellers had that opportunity which came in the form of a listing agreement.
As of January 1st, 2024 the comprehensive overhaul of existing laws brought key updates such as:
- A mandatory requirement for brokers to engage in a written agreement with buyers known as the Buyer Broker Services Agreement. This agreement delineates the terms of representation and compensation, affording buyers the opportunity to actively negotiate these terms. This is no longer an optional step – the law requires it of every broker.
- Enhanced disclosure of limited dual agency, allowing consumers the opportunity to consent to such a relationship, departing from the prior passive consent model and the idea of dual agency not being a form of limited agency.
- Requirements for brokers to provide the Real Estate Brokerage in Washington pamphlet to their clients, as well as any unrepresented parties.
What does this mean for you?
For Buyers:
In Washington State buyers are required to enter into a Buyer Broker Services Agreement before, or as soon as reasonably practical after, your broker starts to provide real estate brokerage services. This agreement covers critical elements such as the term of the agreement, the exclusivity of the working relationship, the agreed compensation rate, and where your brokers compensation will come from (By buyer, seller, or perhaps a combination of both). Additionally, buyers now have the right to request their broker to filter listings, ensuring they are not shown properties with compensation rates below their agreed terms.
For Sellers:
Notable changes for sellers include the ability to negotiate the compensation rate you may be offering to a buyer broker. Prior to 2022, NWMLS rules prevented buyers and their brokers from negotiating a seller’s advertised compensation rate. Furthermore, buyers can now influence the listing process by requesting their broker to filter out listings that do not align with their compensation agreement.
These changes signify a considerable stride toward modernization and heightened transparency within the real estate brokerage business in Washington State. The introduction of the Buyer Broker Services Agreement not only empowers buyers, but also ushers in a paradigm shift in negotiation practices for the benefit of sellers. As we embark on this regulatory transformation, it is evident that these changes will foster a more equitable and informed real estate environment for all parties involved.
Frequently Asked Questions
How do I know what compensation rate a seller is offering to a buyer broker?
In Washington state, all online listings provide a Buyer Agency Compensation (BAC) or a Buyer Brokerage Commission (BBC) section, ensuring transparency. This helps buyers prepare if the BAC/BBC is less than their agreed rate in the Buyer Broker Services Agreement.
What if the home I want to purchase offers a BAC/BBC rate less than agreed upon in the Buyer Broker Services Agreement?
If the compensation rate is lower than your agreement, have a conversation with your broker to explore options. You might discuss asking the seller to increase their rate, consider covering the difference yourself, or your broker may choose to waive the difference. Several options are available to you to address the delta in compensation rates.
How do I terminate the new Buyer Broker Services Agreement?
To end the agreement, request a termination form from your broker. Keep in mind there may be an agreed-upon tail provision; you might owe your broker compensation if you buy a home they showed you after termination within a specified time. Make sure to review your agreement to be aware of this timeline.
Can I enter into Buyer Broker Service Agreements with more than one broker?
The possibility depends on the nature of your relationship. If you have an exclusive agreement with a broker covering an unlimited area, they are your sole broker when it comes to purchasing a home. However, exclusive agreements for different areas (e.g., counties) with different brokers are possible. Non-exclusive agency agreements allow engagement with multiple brokers simultaneously.
Are all Buyer Broker Services Agreements the same?
Not exactly. While the law outlines the minimum terms required that everyone must include, variations do exist among forms in the form of optional clauses or requirements. Our Buyer Brokerage Services Agreement covers each term the law requires so you can be sure both you and your broker have complied with state law. It is important to review the agreement and included terms to understand the agency relationship you are entering in to.
Have more questions before you are ready to navigate the future of Washington’s real estate? Reach out and let’s connect!
