Christine Estes 206-910-7926 Chris@GroupEstes.com www.GroupEstes.com

AN AFFILIATE OF THE IRWIN GROUP

Group Estes Realty 23515 NE Novelty Hill Road

Suite B-221, #402 Redmond WA 98053

The Average Kitchen Renovation has a Return on Investment of 68.7%*

Dear Friend, August 2011 Well here we are, finally getting some glorious summer weather and I hope you are able to make the most of it! I am delighted to report that the market numbers that I’ll be reporting on later in this letter have some continued glimmers of good news for stability. And I truly believe that stability will be good news for buyers as well. In order to have the best choices for a new home, one wants all of the interested sellers to be competing, not just the ones who really feel no choice but to sell in this buyer’s market. A more balanced market can provide some potentially better options for buyers while still not being a crazed sellers’ market like we came out of in the 2005 to 2007 time period. But I’m getting ahead of myself. This month’s flyer offers some remodeling specifics – numbers and options for both major and minor-scale projects – that may be helpful. The kitchen remains the most popular room in the house to remodel. We renovate to modernize this gathering space with the latest appliances, to accommodate changing needs and/or to add value to the home in anticipation of a sale. Although it can be tempting to spend thousands on the latest trends and brands, it is possible to revamp a kitchen without breaking the bank. (Especially if you are contemplating doing this kind of renovation to prepare your property to sell, please consult with me to be sure that you avoid the over-improvement trap – because that will cost you money you may not need to spend!) As you would expect, I have contractor and design consulting firms to refer to you if that would be helpful. And I would be happy to serve your family or friends if they have questions or need support in this area… Please call or email me for more information… Meanwhile, the market. The Seattle Times reported earlier this month that the volume of properties sold in King County is up almost 14% over July of 2010. In Snohomish County that number was 12.5% and Pierce saw an incredible 25.5%. The buyers are out there! So how does that translate to inventory, time on the market and average sale prices? The numbers I am reporting on below compare all of 2010 to 2011 year-to-date, smoothing out the monthly spikes to get to the trends. Inventory is down across-the-board, whether King County as a whole, the Eastside, Seattle Metro, Snohomish County as a whole, Southeastern and Southwestern Snohomish, or Pierce County as a whole. The time it takes to sell a property (the Days on Market calculation) is down on the Eastside (113 days), up in Seattle Metro (93 days), up in Southeast Snohomish (130 days), stable in Southwestern Snohomish (109 days) and stable in Pierce County (123 days). And pricing – as a reminder, these are average sale prices:

King County as a whole is down 7%

The Eastside is down 5%

Seattle Metro is down 6%

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Snohomish County is down 11%

Southeastern Snohomish is down 6%

Southwestern Snohomish is down 12%; and

Pierce County is down 9%. In short, inventory is down, and the buyers are out there. The distressed properties continue to affect the average sale prices, however, we are also hearing that the volume of distressed properties hitting the market has peaked. Now what I have is a national number, reported on as of the June closings by the National Association of Realtors – and that number is 30%. 30% of all sales nationwide were distressed homes – the far more positive statistic is that 70% were a combination of traditional resales and new construction! It’s not that the distressed property situation is over, far from it unfortunately, but in some areas locally, distressed properties are not the norm, they are the exception. And given the condition that some of these distressed properties are in, that’s good news too. Before wrapping up, we of course have five vendors to highlight for you this month. We randomly select a group of vendors from our referral list – to give you a sense of the breadth of connections that we can help you with, and to give our trusted vendors the vis ibility that we feel they deserve. Spotlight Vendors for August

Day & Nite Plumbing & Heating - 425-775-6464 - sales@dayandnite.net Air Conditioning, Furnace, Heating, Hydronic, Plumber Ken Steiner - Homestreet Bank - 206-389-4405 - ken.steiner@homestreet.com Lender Chris Hill - P.O.P. Electric - 425-485-5118 - popchris@comcast.net Electrical Nancy & Tom Nibarger - Nibarger Construction - 253-740-2653 / 253-740-2884 - nibargernln@hotmail.com Excavating, Painter, Rockeries Mark Gile - In Harmony Landscaping Services - 425-486-2180 - markg@inharmony.com Landscape Design

Enjoy the rest of your summer! It’s hard to believe we’ll be beyond Labor Day and the kids will be back in school when I write your next update. As always, I truly appreciate your advocacy. My team and I are here to serve you and the people in your life – just let us know what we can do to be of continued service. Sincerely,

Always looking for more ways to be of service … if you know of someone who would appreciate the level of service I provide, please call me with their name and business number, and I’ll be happy to follow up and take great care of them.

Kitchen Remodeling:

Add Style and Function Without Going BrokeThe kitchen is the center of family life, where meals are shared and lively conversations occur. It is also one of the most popular rooms in the house to remodel. Whether you wish to modernize and incorporate the latest trends into your existing kitchen or seek to build a brand new one that fits your evolving needs, you don’t have to break the bank.

$20 in the can is worth $1,000 on the Wall It may be tempting to knock down a wall and start over from scratch;

however, you can save money by keeping the same footprint as the current

kitchen. Instead, repaint the walls for a fresh look.

Cost of Alternative:

Paint: $12-$30 per gallon

e average kitchen renovation takes

2 years to complete and has a return on

investment (ROI) of 68.7%.1,2

Source: 1)National Kitchen and Bath Association

2) National Association of Realtors 2010-2011 Remodeling Cost vs. Value Report

3)National Kitchen and Bath Association 2011 Survey

© 2011 Buffini & Company. All Rights Reserved. Used by Permission. LGK AUGUST IOV S

Kitchen Trends: If you plan to move soon, choose conservative earth tones in zero- to low-VOC paint.

Save up to 95% on FlooringHomeowners can choose from an assortment of flooring options, with marble being the most expensive option from $10 to $40 per square foot. For a cheaper alternative, use ceramic or porcelain tiles for a modern look at a fraction of the cost.

Costs of Alternatives:

Glazed Ceramic Tile:$1-$20 per square foot

Porcelain Tile:$2-$4 per square foot

“Stainless Steel” for pennies Stainless steel appliances can cost between $50 and $7,000, depending on the appliance. Stainless steel films provide the look of stainless steel for a fraction of the cost—just peel and stick the film on your existing appliance.

Kitchen Trends: Many homeowners choose dark to medium natural finishes for their cabinetry over white, light natural and colored paint.3

Kitchen Trends: Although granite remains one of the most popular choices for new countertops, quartz and laminate options are gaining ground.3

Kitchen Trends: Although traditional options—tile, wood and laminate flooring—remain popular choices, marble flooring is the latest trend for high-end kitchens.3

Cabinets for 80% less New cabinets can range from $5,000 to $20,000. Instead of buying new cabinets, paint or reface your existing cabinets, or install new hardware for a clean look.

Costs of Alternatives:*

Cabinet Refacing: $2,000-$4,000

Repaint Cabinets: $50-$200

New Hardware: $2-$10 per piece

*Costs do not include installation

75% o" CountertopsNatural stone countertops are durable and attractive, but range from $50 to $200 per square foot. If you’re on a budget, ceramic tile and laminates are alternatives to more expensive countertop options.

Costs of Alternatives:

Ceramic: $20-$100 per square foot

Laminates: $10-$20 per square footCost of Alternative:

Stainless Steel Film: $20-$65 for pre-cut film, sized to appliance

Kitchen Trends: Hot trends include freezer-bottom and French door refrigerator models as well as induction stovetops.

Sellers often renovate their kitchens to add value to their home and make it more competitive in the market. The popularity of home renovation reality shows has raised the bar for kitchen remodels and exposed sellers to the latest in design trends. However, investing in these trends may not be worth the time and cost if you plan on moving soon after completing the project.

How to Do a Pre-sale Kitchen Renovation

Before you embark on a full-scale kitchen renovation, keep in mind:

Avoid professional-grade appliances. Although dual-fuel ranges and multiple ovens may be all the rage, resist thinking that these pricey features will woo potential buyers. Whoever buys your home may not cook or may prefer a simpler setup. Instead, replace aging stoves, dishwashers and refrigerators with standard, energy-efficient models.

Remember that your taste and the buyer’s taste may differ. Regardless of how much money you spend on the remodel, the new owners will want to stamp their mark on the place.

Think twice about expensive cabinets and countertops. Unless your cabinets or countertops are in poor condition, they don’t need to be replaced. Instead, consider refinishing them or remove clutter and do a thorough cleaning. With some organization and elbow grease, your kitchen will look as good as new.

Sometimes all it takes is a can of paint. One of the cheapest ways to revamp the look of the kitchen is with color, or lack thereof. Paint the walls a neutral shade to create a blank canvas for prospective buyers.

Source: RISMedia, Jan 24, 2011

Size of Kitchen: 200 square feet

Cost: $21,695

Resale Value: $15,790

Cost Recouped: 72.8%

Elements:

Source: Realtor, January 2011

A Minor Kitchen Remodel

3 Tips for a Stress-free Kitchen RemodelSpend 6 months planning your remodel, keeping in

mind traffic patterns, safety and outdoor access.

5 years, consider a minor remodel instead.

Budget for unexpected costs. While you can’t plan

for the unexpected, you should budget for it. Add

10 to 20 percent to the budget as a cushion.*

*Source: National Association of the Remodeling Industry

e cost of a high-end remodel with granite countertops and cherry cabinets averages $111,794.

Source: Remodeling Magazine 2009-2010 Cost vs. Value Report { }

Christine Estes

Group Estes Realty23515 NE Novelty Hill Rd

Ste B-221, #402Redmond, WA 98053

206-910-7926

Chris@GroupEstes.com