Category Archives: Jennifer’s Community

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Washington REALTORS® 2020 Legislative Day Recap

Almost 500 REALTORS® and Affiliates showed up for the WR Legislative Day event on January 22-23rd in Olympia. The sheer number of REALTORS® who came from all over our state to represent members and property owners is a statement to our Legislators in itself!

REALTORS® met with Legislators throughout the afternoon to discuss Washington REALTOR® priorities, including the following:

  • EXPAND LOCAL HOUSING SUPPLY EFFORTS Last session, the Legislature passed HB 1923 that incentivized cities to adopt regulations and plans to increase housing supply and affordability. This bill was part of REALTORS® Unlock the Door housing supply campaign, and now over 50 cities are implementing the law. In 2020, will expand this program by extending the deadlines for local governments, including additional types of housing ordinances, and increase the number of cities that are eligible to participate. A range of aggressive and sustained action on housing supply is needed from addressing homelessness and low-income affordability, to stopping the alarming trend of decreased of homeownership.
  • EXTEND MULTI-FAMILY TAX EXEMPTION The state’s Multifamily Tax Exemption (MFTE) has been successful in helping create thousands of new units of privately-owned affordable housing. This program has been central to urban redevelopment and housing supply efforts in both small and large cities. These bills extend the authorization for the MFTE and provide additional flexibility so the use of the MFTE can be tailored to meet the variety of needs at the local level.
  • PROTECT REALTORS® INDEPENDENT CONTRACTOR & AGENCY LAW PROVISIONS Recently, the Legislature passed bills clarifying independent contractor status for real estate brokers and reaffirmed the state’s real estate agency laws; to include the statutory duties of brokers and dual agency requirements. Despite this, conflicting employment legislation has been proposed that would negatively impact the real estate industry by altering the status of real estate brokers as independent contractors and real estate agency laws. The unique structure of the real estate industry should be acknowledged and protected in future employment legislation.
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8420 204th St Ct E, Spanaway, WA 98387

$379,999

4 bedrooms + den; 2.5 bathrooms; 2204 square feet

Absolutely Stunning! All of the updates & beautiful custom touches make this home truly one of a kind! Fresh paint & stylish throughout w/ crown molding & new floors. Gorgeous new kitchen w/ 1st class stainless apps & elegant marble floor. Luxurious master bath w/ custom counter, shower & floor. This unforgettable home offers a variety of entertaining options, including a large patio w/ gazebo that stays, a fully fenced large lot & RV parking. It also features a new roof & water heater, and A/C.

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Sold 2/28/20 for $385,000

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1827 187th St Ct E, Spanaway, WA 98387

$294,900

3 bedrooms; 2 bathrooms; 1214 square feet

You’ll love this bright craftsman rambler w/ open floor plan, vaulted ceilings, fresh paint throughout the interior and all new blinds! Enjoy beverages on the covered front porch, BBQs on the back patio & entertaining in the fully-fenced (w/2 gates) level backyard that’s near a green area. Master bedroom features full bath & walk-in closet. You’ll appreciate the gated community w/ playground, basketball, picnic & relaxing area.

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Sold 12/24/19

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A Possible New Way to Fund Roads in Washington State

Washington has been exploring a potential gas tax replacement to fund our roads and bridges. Conducted by the Washington State Transportation Commission (WSTC), the test-driving phase of the Washington Road Usage Charge (WA RUC) Pilot Project ended in January 2019. Approximately 2,000 drivers participated in the year-long WA RUC Pilot Project, reported their mileage, and provided feedback to help state decision-makers understand if this potential policy could work for Washington drivers.

Did you know that the current gas tax of 49.4 cents per gallon is used to fund the state’s roads and bridges? As cars become increasingly more fuel efficient and as more electric vehicles are on the road, gas tax revenue used to support our roads and bridges will decrease more each year. To ensure stable, long-term funding, we need to change the way we pay for our roads.

A road usage charge (RUC) system is a per-mile charge drivers would pay based on how many miles you drive, not how much gas you consume. This approach is similar to how people pay for their utilities, including electricity or water. The WA RUC Pilot Project tested a mock 2.4-cent-per-mile road usage charge for light-weight, non-commercial vehicles including gasoline-fueled, hybrid, and electric vehicles.

Read more and watch a short informative video at WaRoadUsageCharge.org…

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1846 N Baltimore St, Tacoma, WA 98406

$359,950

3 bedrooms; 1.75 bathrooms; 1532 square feet

You’ll love this light and bright rambler with completely open floor plan, vaulted ceilings and skylights! The large kitchen with lots of cabinets and counters is conveniently located off the utility room and garage. You’ll appreciate the utility sink and all appliances that stay, including a freezer. The large master suite features a large walk-in closet and double sinks. Enjoy the fully-fenced yard with fruit trees, sidewalks, large covered patio and boat/trailer parking. Though exterior paint is needed, the home has a new water heater and some newer windows.

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Sold 1/10/20

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6102-6104 85th St SW, Lakewood, WA 98499

$409,900

Duplex: 4 bedrooms; 3.5 bathrooms; 2888 square feet

Awesome Investment Opportunity! Well maintained duplex with spacious 2 bedroom, 1.75 bath units. Newer roof, garage doors w/ openers, and appliances. Updated windows & insulation. Well maintained synthetic stucco, brick chimneys & sprinklers. Tenants appreciate the large master bedrooms w/ double closets, living rooms w/ wood fireplaces, utility rooms w/ sink & cabinets, extra deep & wide garages, and large fully-fenced professionally maintained yards. Both long term tenants are month-to-month.

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Sold 9/13/19

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31003 14th Ave S #E-20, Federal Way, WA 98003

$130,000

1 bedroom + den/office; 1.75 bathrooms; 831 square feet

Don’t miss this opportunity! Enjoy unlimited potential to create the ground floor end unit of your dreams! You’ll appreciate plenty of parking & a laundry rm behind E bldg. This beautiful & well maintained lakeside community has a clubhouse, gazebo, pool, hot tub, sauna & exercise rm. Enjoy sunsets & geese on peaceful Easter Lake from the gazebo or clubhouse. Very near stores, restaurants & main bus line. Ideal for investors with no rental cap. This unfinished condo requires cash or rehab loan.

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Sold 9/12/19

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Higher-end Homes Hit by Excise Tax Rate Increase

Sellers of higher-end homes will pay more in real estate excise tax (REET) next year due to changes adopted by the Washington state Legislature. A new graduated tax, or tiered REET, will go into effect for homes sold on or after January 1, 2020.

Washington state has one of the highest real estate “transfer tax” rates in the country, according to a study by the National Association of REALTORS®. That rate will now be higher for sellers of homes valued at slightly over $1.5 million or more. The current single rate REET is assessed at 1.28% on the sale price of the home. In addition, most local governments in the state assess an additional one-half percent on the sales price, making the current effective rate 1.78%.

Under the new system, effective in 2020, the first $500,000 of value will be taxed at a new reduced state rate of 1.1%, saving the seller of a $500,000 home $900. For the value of the sale between $500,000 and $1,500,000, the tax rate remains 1.28%. For the value of the sale between $1.5M and $3M the rate is 2.75 % and for sales above $3M the rate is 3%. Because the tax is assessed at a marginal rate (the different rates apply on each portion of the sale), the actual break even point between the old and the new rates is $1,561,224 of value. Sales greater than that amount will pay more REET under the new system and sales under that amount will pay less.

The local government REET rates do not change and remain in effect. The combined state and local taxable rate is shown in the table above.

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14108 SE 45th St, Bellevue, WA 98006

$1,549,900

3 bedrooms + den; 2.5 bathrooms; 3220 square foot basement rambler

You won’t forget the Panoramic Views showcasing Seattle, the Olympic Mountains, Puget Sound and Lake Washington! You’ll love the private park-like backyard with mature trees and plants, lighted water feature, landscape lighting and automatic sprinklers. The open kitchen, dining and living rooms feature views, custom fir cabinets and pantry with soft close drawers and doors, pull outs, glass mosaic back splash and in/under cabinet lights, skylights, gas fireplace and tigerwood floors. The partially covered deck, flagstone patio and multiple rooms downstairs offer entertaining options. You’ll enjoy the heated tile and slate floors, heated towel rack, heated medicine cabinets with outlets, and steam room with two rain showers. Though this home is completely updated, you’ll appreciate the recently remodeled master suite, new roof and gutters, and newer carpet and paint. With so much space downstairs, it may become an additional dwelling unit. The panoramic views include Bellevue and Mt Baker on a clear day. Don’t miss this!

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Sold 8/12/19

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Washington REALTORS® Win in the 2019 Legislative Session

The 2019 Legislative Session ended April 28 and Washington REALTORS® had some big wins. We got REALTORS® exempted from a 20% B&O tax increase, killed an effort to undermine “in-house” transactions and passed much of our “Unlock the Door” campaign’s affordable housing agenda, including condo liability reform.

Protecting Our Members

Our trade association’s primary purpose is to protect our members. With that in mind, we were successful in fighting off a direct tax increase on your bottom line. Although the Legislature passed a 20% B&O tax increase that hit most service businesses, REALTORS® were not included. We reminded the Legislature that the B&O Small Business Tax Credit does not apply to REALTORS® because commissions are pooled, and they agreed that exempting REALTORS® was both fair and a reasonable policy decision.

Additionally, we protected the foundation of the industry’s business model. When a bill was introduced that would have changed many independent contractors to employees, we made sure REALTORS® were exempted.

Protecting Your Clients

From the first days of the Legislative Session, we knew that the Legislature was committed to a Tiered Real Estate Excise Tax, based on the idea that higher priced properties would pay more in REET. Although we did not support this proposal, the Legislature listened to us when we spoke and made significant changes, with the result that approximately 90% of transactions will pay the same or less Real Estate Excise Tax. All Transactions up to $500,000 will get approximately a 15% cut in REET. In fact, due to the marginal nature of the new tiered tax (a REALTOR® suggestion), all transactions up to about $1.75M should not be impacted. While this tax impacts commercial real estate and multifamily, it is hoped that the marginal nature of the tax structure will limit that impact. These new rates will not take effect until January 1, 2020.

Protecting the Transaction

Very early in the session, a bill was introduced in both the House and Senate to require all parties in an “in-house” transaction to have an attorney sign off at every step in the transaction. Obviously, this bill would make real estate more expensive for consumers and greatly impede transactions. Washington REALTORS® jumped in and made sure this proposal did not even make it out of Committee in either the House or the Senate.

Increasing Transactions

Thanks to great work from our Washington REALTORS® Condominium Work Group and some passionate members across the state, Washington REALTORS® was able to help pass condominium liability reform that continues to protect the consumer but adds a fairer standard that should encourage developers to start building condominiums again. After looking at the more balanced bill, one developer told us that once developers got comfortable with the new regulations, we should expect a “mini condo boom” in Washington. Additionally, while working with a number of stakeholders, we passed a bill that encourages cities to adopt growth policies that allow for additional density in a responsible way, including Accessory Dwelling Units, allowing duplexes and triplexes in single family zoning and cluster zoning or lot size averaging allowances.