Buyers • March 1, 2021

Buying with Remodeling in Mind

by Carlene Sandstrom

Everyone has their own definition of a dream home. For some, they know right when they see a home that it’s perfect as is. For others, it takes remodeling to achieve their vision. Whether you’re looking for something in need of a few upgrades or a total fixer-upper, buying with the intention of remodeling comes with added considerations.

Finding the Right Home to Remodel

When it comes to choosing the right home to remodel, you’ll want to look for a property that not only aligns with your renovation plans but has significant ROI potential. How much value a home stands to gain depends on a variety of factors, like the cost of the project and your local market conditions. Knowing this information will help paint a picture of a home’s potential ROI. By conducting detailed Comparable Market Analyses (CMAs), your Windermere agent can provide helpful info on how similar homes in the neighborhood have performed on the market. Though these factors don’t provide a concrete valuation, they will help you understand how much your home could be worth.

Choose the Right Remodeling Projects

The right remodeling projects are the ones that align with your plans for living in the home. If you’re looking for an investment property, you’ll be targeting renovation projects that appeal to buyers, like a kitchen remodel, attic conversions, garage door replacement, and exterior projects that boost the home’s curb appeal. However, if you’re planning on putting down roots and staying for an extended period of time, you’ll want to focus on projects that maximize your enjoyment of the space. In either case, any structural issues require immediate attention and should be at the top of your list.

Know Your Remodeling Budget

Your remodeling budget will help you determine the scope of renovations you’re able to afford, and ultimately, which home is right for you. Knowing this information will help your agent identify which homes fall within your range. It will also guide your conversations with your lender when structuring your loan. For more information on home renovation loans, talk to your Windermere agent.

Break Down Your Remodeling Costs

Although remodel cost estimates aren’t always final, they give you an idea of what you can expect to spend. No renovation comes without hurdles and complications, so leave some wiggle room in your budget for unforeseen costs. This will allow you to expect the unexpected and stay within your budget. A cost breakdown will also help to identify areas where you can save money by doing-it-yourself. Painting projects, landscaping, and small-scale demolition are common DIY projects that can add up to significant savings.

Find the Right Contractor

For the remodeling projects that require professional expertise, finding the right contractor is another pivotal step in making your dream home a reality. Start by reaching out to your circle of friends and family for referrals. If someone you know and trust had a positive experience with a contractor, that’s a great starting point. Continue your search by gathering information for multiple contractors in your area and request project bids and timelines from each one. This will allow you to compare pricing and make a more informed decision.

Conduct Thorough Inspections Before Remodeling

Buying a home with the intention of remodeling means that a home inspection is likely to produce a longer list of items than a newly constructed home. Conducting a thorough home inspection is critical to formulating your plans for remodeling. Additionally, it will help identify which issues need immediate attention, enabling you to negotiate repairs and concessions, so long as the inspection is performed during your inspection contingency period.

Homeowners • February 16, 2021

Ways to Save Money by Going Green

by Carlene Sandstrom

Contrary to popular belief, going green does not have to be hard or cost money, in fact it can even save you money. There are many small things that you and your family can do within your home to save money while reducing landfill waste and the use of natural resources. Discover a few ways to go green and save some money by choosing a green home.

Compost Bin

Composting is free and can provide you with rich soil to garden with. You will never have to buy soil and can easily grow plants and vegetables. To create your own bin, get a large trashcan with a locking lid, then drill about 25 holes all around the bin and attach the bin to small platform (allows it to drain). Once you start putting approved items in the bin go outside and roll it around in the grass every few days.

Energy Efficient Light Bulbs

You can save approximately $75 dollars a year by replacing your traditional incandescent with energy efficient light bulbs. On average energy efficient light bulbs typically use way less energy and can last much longer, not needing to be replaced as much.

Laundry

There are quite a few options to save money and energy when it comes to laundry. Here are a few: wait till you have a full load of laundry to wash, line dry your clothes, wash your clothes in cold water and when it comes time to get a new washer and dryer buy an energy efficient one.

Weather-Strip & Caulk

One of the main ways we use a lot of energy, especially in hot and cold climates, is through air-conditioning and heating. One way to reduce the use of heating and air-conditioning is to properly weather strip and caulk all windows and doors keeping your home cool and warm when needed.

Reuse and Reduce

Use items more than once when you can to avoid throwing them out; this might mean buying quantity over quality. Another way is to join The Freecycle Network or Buy Nothing group on Facebook you can swap used goods with neighbors for free and also keeping more waste out of landfills.

DIY Cleaning

Start making your own cleaning products. Not only can you customize, make them eco-friendlier but you will also save money buying products. On average, most DIY cleaners cost less than a $1 to make per bottle compared to $5-$15 per store bought bottle.

Unplug & Turn Off

Put all your major electronics on a power strip and shut off when they are not in use. Even if your electronics are shut off, they still will continue to draw electricity thought out the day. Another tip is to make sure you unplug your cellphone when completely charged and always power everything down while not in use to save on battery life.

Toilet

There is an extremely easy way to make your toilet a low flow toilet. Simply add a brick, wrapped in a waterproof bag or take a plastic water bottle and fill it with sand putting it into your tank. This will reduce the amount of water with every flush. Once you are ready for a new toilet purchase a low-flush toilet.

Shower

Change up your shower head with an energy-efficient shower head that will use half the amount of water. These shower heads are low flow but will significantly cut your water bill down. Another option is to install a tap aerator which will also cut down water usage without changing the water pressure.

Regional Market Updates • February 16, 2021

LOCAL MARKET UPDATE – FEBRUARY 2021

by Carlene Sandstrom

This winter’s real estate market is looking more like a typical spring market. Sales were up, competition was fierce and prices continued to rise. Lack of inventory still presents a huge issue. At the end of January there were only 1,055 single-family homes on the market in all of King County, 33% fewer than a year ago. If that wasn’t tight enough, Snohomish County had only 298 single-family homes for sale, 63% fewer than a year ago. Condos remain a bright spot for buyers frustrated by the frenzied market. January saw a nearly 50% increase in the number of condos for sale in King County. However, the increase in inventory didn’t translate into a drop in price. The median condo price was flat for the county, up 10% in Seattle and up 7% on the Eastside. Those looking for a relative bargain should consider Southwest and Southeast King County where the median condo prices were $254,275 and $269,900 respectively. The large imbalance between supply and demand sent prices higher. Home prices here are climbing at the second-fastest rate in the nation. The median price of a single-family home in King County was $725,000, a 15% jump from a year ago. Seattle home prices increased 10% to $791,471. Inventory on the Eastside was down 58%, sending the median home price soaring 29% to $1.15 million. Snohomish County saw prices rise 18% to $599,990, well surpassing its previous high of $575,000. While low interest rates take some of the sting out of rising prices, multiple offers over asking price have become the norm and are expected to continue. The easing of COVID restrictions may add yet more competition. Both King and Snohomish counties have moved into Phase 2 of the Healthy Washington plan, which allows open houses to resume with up to 10 people socially distanced. All signs point to this strong seller’s market continuing for some time. The person who represents you as a buyer can make the difference in owning a home or not. Brokers are advising buyers to create a plan that prioritizes their wish list and sets realistic expectations in this hyper-competitive market. The charts below provide a brief overview of market activity. If you are interested in more information, every Monday Windermere Chief Economist Matthew Gardner provides an update regarding the impact of COVID-19 on the US economy and housing market. You can get Matthew’s latest update here.

Matthew Gardner Report • February 4, 2021

Q4 2020 Western Washington Real Estate Market Update

by Carlene Sandstrom

The following analysis of the Western Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

REGIONAL ECONOMIC OVERVIEW

After the COVID-19-induced declines, employment levels in Western Washington continue to rebuild. Interestingly, the state re-benchmarked employment numbers, which showed that the region lost fewer jobs than originally reported. That said, regional employment is still 133,000 jobs lower than during the 2020 peak in February. The return of jobs will continue, but much depends on new COVID-19 infection rates and when the Governor can reopen sections of the economy that are still shut down. Unemployment levels also continue to improve. At the end of the quarter, the unemployment rate was a very respectable 5.5%, down from the peak rate of 16.6% in April. The rate varies across Western Washington, with a low of 4.3% in King County and a high of 9.6% in Grays Harbor County. My current forecast calls for employment levels to continue to improve as we move through the spring. More robust growth won’t happen until a vaccine becomes widely distributed, which is unlikely to happen before the summer.

WESTERN WASHINGTON HOME SALES

❱ Sales continued to impress, with 23,357 transactions in the quarter. This was an increase of 26.6% from the same period in 2019, but 8.3% lower than in the third quarter of last year, likely due to seasonality.

❱ Listing activity remained very low, even given seasonality. Total available inventory was 37.3% lower than a year ago and 31.2% lower than in the third quarter of 2020.

❱ Sales rose in all counties, with San Juan County seeing the greatest increase. This makes me wonder if buyers are actively looking in more remote markets given ongoing COVID-19 related concerns.

❱ Pending sales—a good gauge of future closings—were 25% higher than a year ago but down 31% compared to the third quarter of 2020. This is unsurprising, given limited inventory and seasonal factors.

A bar graph showing the annual change in home sales for various counties in Western Washington.

WESTERN WASHINGTON HOME PRICES

A map showing the real estate market percentage changes in various counties in Western Washington.

❱ Home price growth in Western Washington continued the trend of above-average appreciation. Prices were up 17.4% compared to a year ago, with an average sale price of $617,475.

❱ Year-over year price growth was strongest in Lewis and Grays Harbor counties. Home prices declined in San Juan County which is notoriously volatile because of its small size.

❱ It is interesting to note that home prices were only 1% higher than third quarter of 2020. Even as mortgage rates continued to drop during the quarter, price growth slowed, and we may well be hitting an affordability ceiling in some markets.

❱ Mortgage rates will stay competitive as we move through 2021, but I expect to see price growth moderate as we run into affordability issues, especially in the more expensive counties.

A bar graph showing the annual change in home sale prices for various counties in Western Washington.

DAYS ON MARKET

❱ 2020 ended with a flourish as the average number of days it took to sell a home in the final quarter dropped by a very significant 16 days compared to a year ago.

❱ Snohomish County was again the tightest market in Western Washington, with homes taking an average of only 15 days to sell. The only county that saw the length of time it took to sell a home rise compared to the same period a year ago was small Jefferson County, but it was only an increase of four days.

❱ Across the region, it took an average of 31 days to sell a home in the quarter. It is also worth noting that, even as we entered the winter months, it took an average of five fewer days to sell a home than in the third quarter of last year.

❱ The takeaway here is that demand clearly remains strong, and competition for the few homes available to buy continues to push days on market lower.

A bar graph showing the average days on market for homes in various Western Washington counties.

CONCLUSIONS

A speedometer graph indicating a seller's market in Western Washington.

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Demand has clearly not been impacted by COVID-19, mortgage rates are still very favorable, and limited supply is causing the region’s housing market to remain incredibly active. Because of these conditions, I am moving the needle even further in favor of sellers.

2021 is likely to lead more homeowners to choose to move if they can work from home, which will continue to drive sales growth and should also lead to more inventory. That said, affordability concerns in markets close to Western Washington’s job centers, in combination with modestly rising mortgage rates, should slow the rapid home price appreciation we have seen for several years. I, for one, think that is a good thing.

ABOUT MATTHEW GARDNER

Matthew Gardner, Chief Economist for Windermere Real Estate

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

Regional Market Updates • January 15, 2021

LOCAL MARKET UPDATE – JANUARY 2021

by Carlene Sandstrom

The end of 2020 marked a most unusual year, and the real estate market was no exception. While homes sales usually take a holiday during December, this year saw the continuation of an exceptionally strong and competitive market. New listings, closed sales and home prices all went up. With supply nowhere close to meeting demand, the strong market is expected to extend into 2021.

Inventory continues to be the biggest challenge for buyers. While King County had a 62% increase in new listings compared to a year ago, homes were snapped up quickly, leaving the county with just over two weeks of available inventory at the end of the month. The supply of single-family homes was down 35% year-over-year. Buyers considering a condo had far more choices. Inventory was up 45%, but at about five weeks of available units the condo market is still significantly short of the four month supply that is considered balanced. Inventory in Snohomish County was even more strained, with the month end showing only a one-week supply of homes. At the end of December there were only 373 homes on the market in all of Snohomish County, a 63% drop from a year ago. With inventory this tight, it’s more important than ever for buyers to work with their agent on a strategic plan for getting the home they want.

Low inventory and high demand continued to push prices upward. The median single-family home price in King County was up 10% over a year ago to $740,000. Price increases varied significantly by area. Seattle home prices were up 10%. The traditionally more affordable area of Southwest King County, which includes Federal Way and Burien, saw prices jump 15%. And on the Eastside, the most expensive market in King County, home prices soared 17% — the largest increase of any area in the county. Home prices in Snohomish County rose 12% to $573,495, just shy of its all-time high of $575,000.

With 2021 ushering in a new record low for interest rates, and inventory at its tightest in recent memory, 2021 is expected to remain a very competitive market.

Windermere Chief Economist Matthew Gardner’s prediction: “As we move into 2021, I expect continued strong demand from buyers, but unfortunately, the likelihood that there will be any significant increase in inventory is slim. As a result, I believe prices will continue to rise, which is good news for sellers, but raises concerns about affordability. This, combined with modestly rising mortgage rates, could end up taking some steam out of the market but overall, I expect housing to continue being a very bright spot in the Puget Sound economy.”

The charts below provide a brief overview of market activity. If you are interested in more information, every Monday Windermere Chief Economist Matthew Gardner provides an update regarding the impact of COVID-19 on the US economy and housing market. You can get Matthew’s latest update here.

Homeowners • Living • January 7, 2021

Technology in Your Home

by Carlene Sandstrom

Every year there are more products that come out to automate your home. There are many reasons to add technology and to automate your home including safety, security, efficiency and convenience. Here are some reasons and products that are must have for your home.

For Safety

There are many products that will help keep your family and home safe and prevent disaster.

Water sensors – Water damage is a common issue within homes. There are many types of water sensors that will detect water from a burst pipe, a broken supply line or clogged toilet. Water sensors will alert you if your home gets a leak so that you can act quickly to prevent any more damage.
Indoor room sensor – An indoor room sensor is like a smoke detector with many more functions. Most indoor room sensors can detect indoor air quality, temperature, and humidity to help you monitor your home. You will receive alerts, and many are also voice activated.

For Security

Add these products to keep a close eye on your home and belongings while you’re away, or while you’re home

Security cameras – Now with home automation you will be able to keep a close eye on the inside and outside of your home. You can get security cameras that include audio recording, motion detection and allow you to view footage remotely using an app.
Door & window sensors – there are many types of door sensors that will fit your budget. Most are small and sleek so they are undetectable, when their magnetic field is broken by opening a door or window you will receive a notification of the exact window or door that was disturbed.
Smart lock – These are great not just for security but also for convenience. With smart locks you can lock and unlock your door from anywhere.

For Convenience

Take control of your home with automation and smart tech that is simple and convenient.

Smart blinds – smart blinds allow you to lower the blinds without ever getting up. There are few different options for smart blinds to control with a remote, your eye phone or connect them to your Alexa to make them voice activated.
Smart fridge – Smart fridge options can include a lot of different features depending on what you are looking for. Smart fridges can include touchscreen interface that connect to the internet, internal cameras, cooling options and a connection to your phone so that you can control it remotely.
Smart vacuums – smart vacuums are a great self-cleaning tool that you can activate while you are out of your home. These vacuums will clean your floors without any physical labor and can be controlled remotely.

For Efficiency

Smart technology can help make your home run more efficiently & save you money.

Smart Home lighting – with smart home lighting you can control lights in your home remotely. Set a schedule or turn off and on and dim to save energy powering your lighting.
Smart fan – With a smart fan you can control the speed and how long your fan is running. This allows you to turn on the fan at optimal times while also shutting it off when the energy it uses is no longer benefiting you.
Temperature control – For controlling temperatures within your home look for a smart thermostat. Features for smart thermostats include Wi-Fi capabilities, scheduling when your heating and cooling systems start and stop. Most include energy reports so you can adjust how you use the system.

Homeowners • Living • December 17, 2020

2021 Paint Color Trends

by Carlene Sandstrom

Each new year brings a fresh perspective on the latest design trends, home décor, and popular colors for homeowners to incorporate in their homes. This year has greatly impacted the way we depend on the places we live.

This shift in responsibilities has changed homeowners’ needs, which are reflected in the upcoming year’s most sought-after paint colors. Here are some of the color trends you can expect to see in 2021 and how you can incorporate them into your home.

2021 Paint Color Trends

Embrace neutral colors

After a weary 2020, expect to see a return to prominence for nostalgic, neutral colors. The resurgence of neutrals signals a focus on simple comfort, healing, a return towards wellness, and is representative of a lifestyle with a slower pace. Colors to look for include oatmeal hues, cerulean and Aegean blues, and earthy tones.

Comforting colors

More than ever we are looking to our homes to provide us the chance to relax and recharge. Accordingly, serene, warm colors and soft pastels are making a strong comeback. They set the mood by providing a calm foundation, leaving room to add colorful decorations. Keep your eye out for rejuvenating colors including soft reds and creamy off-whites.

Add vibrance

To build upon your neutral palette, add touches of vibrant colors for an exciting contrast. This coming spring, you can expect to see nature-based hues on the rise. In 2021, these nature colors will reflect a return to vibrance after homeowners have spent most of 2020—and, in some places, remain—cooped up due to the COVID-19 pandemic. Colors to look for include rust tones and hues in the gold-to-orange range.

Color trends in your home

The calm, soothing presence of neutrals is best delivered when given ample space, so look to use the neutral palette on large surface areas. Good use cases in your home include painting whole walls, as well as furniture and carpeting choices. For vibrant colors, sprinkle them throughout the home in your décor and through smaller accents.

60-30-10 Rule

After you’ve chosen your colors, follow the 60-30-10 color design rule. It states that 60% of a room’s color should be the dominant color, 30% should be the secondary color, and 10% should be the accent color.

2021 Paint Colors

Here are three 2021 paint colors that will deliver the serene home environment you’re looking for while providing a solid foundation to add decorations.

Aegean Teal

Benjamin Moore’s 2021 color of the year is Aegean Teal. It combines a calming blue, a natural green, and a soothing grey. Its qualities make it a sound choice for bedroom or living room walls, as well as cabinets and other large surface areas. Aegean Teal is the perfect choice for homeowners looking to incorporate a bluish hue into their home without the melancholy undertones that come with blue.

Urbane Bronze

Say hello to Urbane Bronze—Sherwin Williams’ 2021 color of the year. Their selection is founded in the desire to create a sense of calm at home. Urbane Bronze helps to deliver the sense of a sanctuary at home, given its organic appeal. Use this color to give your home a relaxed feel by painting your trim or accent walls. Urbane Bronze pairs nicely with greys and modern greens.

Big Cypress

PPG has selected Big Cypress as part of their “Be Well” 2021 Palette of the Year. This ginger orange pairs well with cherry and mahogany woods, as well as touches of gold. Homeowners looking to create a soothing feeling without missing a sense of warmth can depend on Big Cypress to do the job. Another earthy tone, this color is the perfect choice to create what PPG calls a “huggable” room.

2020 has been a unique year, changing how we perceive and live in our homes. The new year presents an opportunity for a fresh start, so consider exploring these colors and trends to find the right combination for your home in 2021.

Regional Market Updates • December 14, 2020

Local Market Update – December 2020

by Carlene Sandstrom

A recent report ranked our area as the most competitive real estate market in the country, with 71% of homes selling within two weeks. While the number of new listings in November were up compared to a year ago, there just wasn’t enough inventory to meet the current surge in demand.

In King County there were 37% fewer single-family homes on the market – 1,621 homes this November vs. 2,592 a year ago. Inventory in Snohomish County is even more strained. At the end of the month there were just 416 homes for sale as compared to 1,204 a year ago, a 65% drop. Both counties had about a two week supply of homes at the end of November. A four month supply of inventory is considered balanced. Buyers in the market for a condominium in King County had much more options. Condo inventory was up 39% over last year.

The inventory-starved market sent home prices higher. The median single-family home price in King County was up 10% over a year ago to $730,500. Home prices in Snohomish County rose 14% to $566,000. In a survey of homebuyers looking for a home during Covid-19, 82% said they would go over budget to get their ideal home. Record-low interest rates have helped soften the blow of soaring prices a bit. According to Freddie Mac, rates on a 30-year fixed-rate mortgage fell to their lowest level, at 2.71%, for the 14th time this year.

With low inventory and high demand, buyers need to be ready to compete. That means being pre-approved or willing to offer cash, and working with an agent on a plan that includes counter-offers, escalation clauses and other strategies to help win the sale. As many consider working remotely long-term, our home has become more important to us than ever.

VIEW FULL EASTSIDE REPORT

Matthew Gardner Report • December 11, 2020

Matthew Gardner’s 2021 Housing Forecast

by Carlene Sandstrom

Throughout 2020, mortgage rates hit historic lows, largely due to the impact COVID-19 had on the housing market. These low rates drove already high demand for housing even higher, and Gardner does not predict mortgage rates will rise significantly in 2021.

His current forecast sees mortgage rates dropping to their lowest rate in the current quarter at 2.83%, and rising to about 3.08% by the fourth quarter of 2021.

As far as home sales for 2021, Gardner is predicting a large increase in home sales (he covers new construction separately). His forecast puts home sales up by 6.9%, a level that hasn’t been seen since 2006.

In conjunction with this, Gardner predicts a rise in housing inventory, as people who can work remotely move farther away from their offices, or those whose homes aren’t conducive to remote work seek out a better living arrangement.

But Gardner also pragmatically points out that a “mass exodus” completely away from urban centers is unlikely, as many workers may find themselves with a flexible blended arrangement of remote work and a few days in the office per week.

In terms of home prices, Gardner predicts they will continue to rise, but slowly. His 2021 prediction caps out at a 4.1% increase, partially because prices have already risen so dramatically this year that it may become an issue of affordability.

With the rising demand for housing inventory, Gardner predicts that new construction starts for single-family homes will rise by a sizeable 16.4%. This is great news for builders, and also for buyers, as increased inventory may help to alleviate the incredible demand the market has been experiencing.

Along with increased starts, Gardner is anticipating an increase of 18.7% in new home sales for 2021—again reaching a level the market hasn’t seen since 2006.

Finally, Gardner touched on the number of homes in forbearance. As of the end of November 2020, 2.76 million homeowners are in forbearance—but that number is down almost 2 million since May 2020, a drop of 42%.

Gardner does predict that foreclosures will rise in 2021, but he cautions that brokers shouldn’t panic. Though there is temptation to compare this situation with the housing bubble collapse of 2008, Gardner predicts that the actual number of foreclosures will be very mild in comparison.

When the pandemic began in March, the housing market overall was in a much healthier place than it was prior to 2008. Additionally, lenders now are more likely to cooperate with homeowners to help them stay in their homes, and homeowners also have the option to sell and get the equity out of their homes if necessary.

While no one can predict the future with complete accuracy, Gardner’s predictions give us a road map to work from as we approach the new year.

Read the full article on Windermere.com.

Homeowners • Sellers • December 4, 2020

What is Wire Fraud and How to Avoid It

by Carlene Sandstrom

Image source: Shutterstock

A fast-growing form of cybercrime, wire fraud has led to major losses for homebuyers in recent years. Get to know what it is and what steps you can take to avoid it.

What is wire fraud?

Real estate wire fraud is a scam that targets buyers while making payments during the home buying process. Attackers have taken advantage of the fact that there are several people and entities involved in real estate transactions. Between real estate agents title and escrow companies, mortgage lenders and more, there are many steps, some of which involve sharing financial information and transferring money. This gives ample opportunity for scammers to slip through the cracks somewhere along the line.

The timing of wire fraud is typically during closing using a sophisticated phishing scam. Attackers apply the use of fake emails, phone numbers, or websites, often posing as the buyer’s real estate agent and directing them to allocate funds to a fraudulent account. Because the attacker will have scanned, scrubbed, and lifted your personal information in preparation for the scam, their forms of communication can often look familiar and legitimate.

The mission of the cyberattack is to get your funds into an account the attacker owns. To do this, it is common for them to say that you had previously sent funds incorrectly, that they were never received, that there are new instructions for payment, or that there has been a last-minute change in the closing process. These are all major red flags. It is imperative to take extra caution during the final steps of purchasing a home because transfers, once initiated, are difficult to remedy and can delay your closing process.

How can I avoid wire fraud?

Get to know the closing process: Talk with your Windermere agent ahead of time about what to expect throughout the closing process. Discuss payment options with your lender and ask specifically about instructions for wiring funds. It is safer to share this information over the phone than through email, as scammers could accumulate this information to use against you.
Record contact information: Keep a list of the personnel involved in your closing process. Beyond your real estate agent, keep a record of contacts at your mortgage lender, title company, and attorney’s office. In the event that someone new reaches out to you with a request, confirm their identity with one of your contacts.
Call to confirm: Call to confirm wiring instructions before sending the transaction through. Talk to a trusted representative and ask them to repeat the information to verify its legitimacy. After sending the funds, make same-day follow-up calls to ensure they were received.
Trust your gut: If you receive an iffy email or phone call, trust your gut. If something doesn’t feel right, it’s the perfect time to reach out to your contacts, discuss your hesitancy, and get advice before proceeding.

The threat of wire fraud emphasizes the importance of working closely with everyone involved in the purchase of your home. If you believe you have been scammed, contact your bank or wire transfer company immediately and request that they issue a recall notice for your wire. Contact the FBI’s Internet Crime Complaint Center and report the activity with as much information as you can gather. For more information about how to protect yourself from wire fraud, visit the National Association of Realtors’ Wire Fraud resources page.