What is the most valuable piece of advice you’d give yourself?

What is the most valuable piece of advice you could give your younger self today regarding building financial wealth? 💸

For me it’s a no brainer “BUY DIRT”! Not only do I love that song by Jordan Davis and Luke Bryant the video just speaks to my heart and soul of what life is all about AND I have seen it repeatedly with many of my clients.

📖 STORY TIME: in June of 2020 I sold the pictured home for $639,950. The buyers have since had a change of life plan and are moving out of state. Thankfully they have been in the home for 2 years as their primary residence so it will save them on the capital gains tax. WHEW! This month, April 2023, the home is now pending under contract and will be closing soon for around $900,000. That is a profit of around 💰$260,000💰 in 2.5 years!!!! Do the math if you must and see the 📈appreciation they received in this short time. I may be a Realtor and yes, this is my job but it’s a career I love and I believe very strongly the most solid way to build wealth and secure your future is to buy a home. Your own piece of dirt.

Inventory is still low, prices continue to go up, by the time the rate is where you want it, that price home won’t be what you want anymore, so you will have to spend more to get the same house. I always tell my buyers that it’s important to “marry the house, date the rate” Find the home you want in today’s prices and then when rates go down, refinance to save. If you wait for the rate to go down for 12 months or, more, and prices increase 5-10% during that time, what are you really saving? And, the main reason you are moving cannot be achieved if you stay put (need more space, closer to family, etc. )

You are investing in yourself when you purchase a home. We purchased our first home at 7.5% and that was normal!! Over time home values will always continue to rise, homes are a long term investment and let’s face it it’s better than paying the 100% interest you are currently paying on the rental you have.😟

Let me know if you want me to help you build your financial wealth!

Tax Day! What to keep and for how long.

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With Tax Season coming to a close and all that paper everywhere do you feel like just throwing it all up, away or into the fire? Boy I know I do but, we have to keep some important docs and I hope this list is a good reminder.

Tax returns- 7 Years– Keep tax returns and all supporting tax docs, including W-2’s, 1099 forms, property tax info, bank statements, mortgage interest statements, cancelled checks, receipts, home purchase and  home improvement info.

Paycheck stubs– 1 Year

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  1. Mortgage docs 10 years- After property has sold 7 years.
  2. Mortgage statement’s 7 years-  After property has sold 10 years
  3. Repair bills/contracts 10 years

Insurances

  1. Home 5 Years
  2. Life of policy +3 years
  3. Medical 5 years

Investment/Retirement Accounts

  1.  IRA contribution’s permanently
  2. 401K annual summaries-keep until you close the account
  3. Investment statements 7 years after last account is sold.

thCAAFBPQHPermanently Never Shred

  1. Adoption/Guardianship Papers
  2. Birth Certificates
  3. Citizen/Naturalization
  4. Health Immunization
  5. Lawsuits
  6. Marriage/Divorce Decree
  7. Pension Plan Docs
  8. Veteran Papers

What is your favorite style of home?

We’ve all had that moment — driving down a street and we see a home we like specifically for the architecture and design elements. The United States is full of different home styles and architecture, and pinpointing a specific one can be difficult, especially when dominant home styles change from region to region. The homes below are examples of the most prevalent home styles found throughout the United States.

Which is your favorite and why?

 A Victorian

VICTORIAN

Victorian homes give off a certain air and possess a very stately feel. Victorians are more about beauty than functionality, with complex designs, ornate trim, and large wraparound porches. The Victorian exterior is seen as a medium for decoration. These homes generally have gables, bay windows, towers, overhangs and many are known as ‘Painted Ladies.’ The Victorian style also has sub styles, the most notable being Gothic Revival, Italianate, Second Empire, Queen Anne and the Romanesque style.

A craftsman Bungalow

Craftsman Bungalow

The Craftsman or Bungalow style is seen as an expression of structure and elements that rely heavily on simple, elegant design. The Craftsman is one of the most common and popular styles in the United States, with an incredible resurgence in the last five years. These homes are characterized by their wide front porches, low-pitched roofs and exteriors that use wood, stone and/or brick. The interior of the Craftsman also has an open floor plan with many built-ins throughout the house.

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Tudor

Tudors are very distinct and based on English building traditions during the Tudor Era (1485 – 1603). Tudors are characterized by their asymmetrical exteriors with windows playing a large part in the design. These homes generally have stone and stucco walls with wood accents/framing, and Tudor roofs are steep-pitched. Tudor homes are one of the most recognizable styles in the United States due to their specific architectural components.

A Cape Cod

Cape Cod

Cape Cods were first built in the 1600s and took inspiration from Britain’s thatched cottages. Cape Cods have steep roofs, dormer windows and large chimneys — elements that helped the homes withstand harsh Northeastern winters. The Cape Cod style is most recognized for its dormer windows, which play a large part in the design of the home.

A ranch

Ranch

Ranches are also known as ‘Ramblers.’ Ranches are characterized by their single-story construction and low pitched roofs. Ranches became very popular in the post World War II era, with a large resurgence in the 1960s as ‘mid-century moderns.’

A colonial

Colonial

Colonials are another home style that have a distinct appearance. Symmetry plays a large part in Colonials — evenly spaced shuttered windows, dormers, columns, and old Colonials will have many fireplaces. The most common Colonial in the United States is the Georgian Colonial, characterized by its strict symmetry, box shape, paneled front door below a decorative crown, simple or flattened columns, and the most notable feature of five shuttered windows across. Other notable Colonial styles in the United States are Dutch, Federal, and Spanish.

A contempary

Contemporary

Contemporary homes have an almost futuristic look to them, but many contemporary homes look to connect the indoors with the outdoors. Natural light plays a large part in the contemporary home, as do flat roofs and simple horizontal and perpendicular lines. Contemporary homes embrace industrialism and put an emphasis on the use of efficient and affordable materials, and the homes emphasize an importance of combining materials (steel, glass, wood, stone, etc.) to create a fluid space.

A spanish

Spanish

Spanish style homes incorporate a fusion of design elements from European and Native American architecture. The Mission Revival style is the most popular, which has its roots in Spanish churches built by missionaries. Spanish style homes tend to have clay roof tiles, arcaded porches, arched corridors, bell towers, square pillars and quatrefoil windows (these windows resemble flowers).

A mediterranean

Mediterranean

The Mediterranean style became very popular in the United States in 1918 to 1940. This style is modeled after the hacienda style, where red tile roofs, arches, and plaster surfaces play a large part in the exterior of the house. Mediterranean style homes have become popular again, but the style has adopted more design elements like porticoes, balconies, and ornamental details that include heavy wood doors, tiles in multiple colors or designs, and balconies with ornate iron railings and embellishments.

A pueblo

Pueblo Revival

The Pueblo Revival is a style favored in the Southwest, highly influenced by the ancient Pueblo’s simple multifamily homes. This home style favors materials sourced from the earth — adobe, concrete, stucco or mortar, and wood beams — and the homes tend to feature enclosed courtyards and flat or sloping roofs. The Pueblo style is also characterized by rounded exteriors that exhibit square windows, weathered wood doors and exterior stone accents.

Homes can take any shape or size, and many homes built today embrace two or more styles. The United States has many other home styles not featured. If you’re looking for a home in a particular style, your agent will be able to help find that perfect property.

If you’re interested in learning more about home styles, you can find more information here: This Old House, Popular House Styles, DIY Network

Do you know about an exemption that can save you money when you sell?

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TAX TIP: The 121 Exemption When Selling Your Home

The reason to do a 1031 exchange is to avoid capital gains taxes on investment property. Almost once a week I get asked about the sale of a primary residence. When you sell your home, you have an exemption from most capital gains taxes. A great resource to get more details about that is an IRS Publication, updated annually, called Selling Your Home (Pub 245). You could go to IRS.gov to download that.

In short, there is a 121 Exemption for capital gains taxes up to $250K per individual or $500K per married couple filing jointly. You do have to have lived in the property as your primary residence for 2 out of the last 5 years, and you can only take this exemption, once every 2 years.

This has been used in a long term strategy to avoid paying capital gains on rentals by converting the property from investment to primary residence. The IRS got wise to this strategy and put some constraints on this.

It could still be part of a plan, but reach out to your tax advisor with questions and see if this is an option for you

Home Maintenance Tips

A roof

Roof Maintenance

Most all roofs can, and will develop leaks in them; and a simple home inspection won’t guarantee to find them all. Leaks normally start as very small crevices or cracks, without the homeowner’s knowledge. In the early stages of a leak only small amounts seep through the crack, this is not a sufficient amount to alert the homeowner as it doesn’t travel through all the layers of the ceiling.

It is recommended that you have your attic, and roof thoroughly checked twice a year for such leaks. The most common source of leaks is flashing as they are often overlooked when repairing/replacing the roof, so be sure to inspect your flashing from time to time.

A garage door

Garage door maintenance

When it comes to home maintenance, your garage door might not be at the top of your list or even on it at all! However regular maintenance could save you headaches down the line, and the following tips may help keep your garage door working properly for decades to come. Applying a solvent like WD_40 to the roller tracks, and latches should prevent them from sticking over time due to rust and corrosion. While you’re there examine each component and replace any bent or broken parts as needed. Also be sure to apply some lubricant to the garage door opener if it is operated by a chain or drive screw. Wooden garage doors should be sealed and painted on a regular basis, and DIY network suggest caulking all cracks. Also, check the weather sealant at the bottom of the door and if it is damaged, replace it before the rainy season.

About.com recommends adding garage door maintenance to your yearly maintenance schedule. Spring or autumn are perfect times to make a date with your garage door, in between the harsher weather periods.

Finally this is one I see homeowners forget a lot. Your HVAC system worked very hard last winter. Have it inspected and cleaned by a professional HVAC contractor and keep those filters changed for the spring and summer months as well.

Get it done and enjoy the spring!

Quote & Smoke~ Stay Safe!

            “The few who do are the envy of the many who only watch.” -Jim Rohn

 Smoke alarms are an important defense against injury or death in house fires. The National Fire Protection Association states that nearly two-thirds of home fire fatalities happen in homes with non-working or missing smoke detectors. Most building codes now require smoke detectors in all residential structures, which has resulted in a steep drop in fire- and smoke-related deaths. Homeowners should check with their local public safety office or fire department for specific information on these requirements.

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NOTE: Remember Washington state has mandated CO Carbon Dioxide detectors installed in all home at change of ownership
  • As in real estate, location is important! Smoke alarms should be in installed every bedroom, outside every sleeping area, and on each level of the home.
  • Alarms should be placed high on a wall or on the ceiling. It’s best to follow the manufacturer’s instructions for placement. High, peaked ceilings have dead air space at the top; smoke alarms should be placed no closer than 3 feet from the highest point.
  • For areas close to the kitchen, use a detector with a hush button that can be used to silence nuisance alarms triggered by cooking smoke or steam. Alternatively, consider installing a photoelectric alarm, which is better at detecting smoldering fires (vs. flames) near the kitchen. Never remove the unit’s battery to stop or prevent nuisance alarms.
  • There are two primary types of smoke alarm technology: ionization and photoelectric. According to the National Fire Protection Association, ionization alarms are more responsive to flames, while photoelectric alarms are more sensitive to smoldering fires. For the most comprehensive protection, both types or a combination unit should be installed.
  • Test the alarm monthly. Put a reminder in your calendar to do this on the first or last day of the month, for example. The units have a test button that will sound the alarm for a brief time when pressed. Any alarm that fails to sound should have the battery replaced. If the test button fails with a new battery, replace the entire detector immediately. Monthly testing is also an ideal time to dust off the unit.
  • Replace the batteries at least once a year. A common rule of thumb is to do this when changing to or from Daylight Saving Time in fall and spring. Some alarms come with 10-year batteries; for these, follow the manufacturer’s recommendations for battery replacement. Remember, a non-working alarm is no better than no alarm at all.
  • If the alarms are hard-wired to the home’s electrical system, make sure they are interconnected for maximum effectiveness – meaning that if one alarm is triggered, all of the others will sound as well. Any hard-wired alarms, interconnected or not, should be installed by a licensed electrician.
Thank you to local Pillar To Post Home Inspector for this great reminder and  information!
BUSINESS TIP OF THE WEEK… It’s not about what you get, it’s about what you give. Focus on giving your clients more and the rewards will follow.
#snohomishcountyhomesrealestate, #homeownertips, #homemaintenancetips