Seattle Real Estate Advocate

Is Condo Living Right for You?

2010-12-11T10:04:00.000-08:00

For many people, condominiums are a first choice for homes. There is a wide range of sizes and prices for almost any living style and budget. For some, the attraction is an opportunity to enter a competitive housing market with a lower initial investment. However, there are some marked differences in selecting a condo over a single family house. If you’ve never owned a condominium, this may help you evaluate your housing needs in relationship to owning this type of home.

Pre-approvals for financing a Condo. In Seattle, as in many places, the first step in any real estate purchase is discussing your goals with a local lender. Once you have obtained a pre-approval letter from your lender, your search can begin in earnest. Condominiums will have monthly Home Owner Dues (HOD) that is paid in addition to your loan payment. Most lenders will calculate your monthly expenses to reflect the HOD for a more realistic picture of your financial obligations upon purchase.

Neighborhood Review. This process should begin even before you locate a property. When considering a neighborhood, you can (and should) research local features, schools, crime statistics, sex offender registrations, zoning, and other facts that interest you before investing your time searching for homes in that area. Some brokers recommend designating a neighborhood review period as a contingency in your offer. I believe the neighborhood itself should be ruled-in or ruled-out earlier in the process, much sooner than an offer.

Earnest Money & Offers. At the time you want to make an offer on a property, you will need to have funds available to place as a down payment, typically referred to as Earnest Money. This is a considered a “good faith” deposit to demonstrate your serious intent of the offer. In the Seattle market, Earnest Money can be 3-5% of the sales price, but can also be much lower on non-competitive properties. The funds are held in your agent’s company trust account or a designated escrow office until the closing of your purchase transaction. In the event that you decide to terminate the contract as part of a legal contingency right (such as financing, inspection, or Resale Certificate inspection), and it is within the prescribed contractual period of time, your Earnest Money will be refunded to you. When all contingencies are satisfactory and the purchase proceeds, your Earnest Money will be credited to your down payment or closing costs, whichever you prefer.

Condominium Associations. Purchasing a condominium involves both ownership in the unit and interest in the building. The building will be managed by an outside property management company or by the collective owners. When your offer is accepted, you receive what is referred to as the Resale Certificate. This contains building documents including, but not limited to: reserve study, rules and regulations, floor plans, insurance information, allocation of common and individual elements, parking and storage numbers, property maintenance schedules, financial statements (the use of funds, past due bills, future projects and costs, and general operating costs of the building), and the meeting minutes from the Home Owner Board Meetings. It is generally a large collection of documents that will give you an indication how well the building is managed and what, if any, are the future maintenance and repair costs of owning your unit. It is critical that you read through these documents carefully. Upon receiving the Resale Certificate, you will have 5 days to review all the materials and accept the building / association facts. If not, you will be able to terminate the offer and receive a refund of your Earnest Money.

Home Inspections. A home inspection is not required, but is recommended. A condominium inspection will typically only cover the unit interior and the common areas. An inspector can examine interior features such as: electrical, plumbing, fixtures, appliances, lighting, heating, fans, decks, walls, floors, water heaters, and other structural items. Although the outside of the building is the responsibility of the Home Owners Association, it is sometimes helpful to have your inspector examine the exterior of the building. When matched to the documents contained in the Resale Certificate, one can sense whether the HOA has realistic expectations and funds to cover maintenance and repairs.

Choosing a Condominium.
Noise: Consider the unit location within the building. Are the floor plans stacked? Are the windows double paned? Does the Association allow hardwood floors in all the rooms?
Pets: Most Associations have clearly defined rules about pets. You may see a “pet ok with restriction,” a weight restriction, or a dogs or cats only rule.
Common Areas: Do you need an outside space or BBQ? Is smoking allowed there?
Parking: Parking is very valuable in Seattle. Is there secure parking? If not, how easy will it be to park near your unit? Having a parking space deeded to your unit will be reflected in the purchase price and value of your unit.
Water Pressure: Check the water pressure in the shower and kitchen faucet. In a large building, sometimes the higher floors will have lower water pressure.
Laundry: Is there an in-unit washer/dryer or laundry room located elsewhere? Is there a set schedule or usage system for the laundry room?
Storage: Is there an extra storage available? Is it secure, dry, and easily accessible?
Renting: Most condominiums will have a policy concerning the renting of units. Many Associations will allow only a certain number of rental units in the building at any one time to preserve the value of the building. Some do not permit renting of units at all. Be sure the rules of the building fit with your needs and lifestyle.

Thanks to Heather Morford for contributions to this article.

Selling a House in Winter

2010-11-12T11:47:00.000-08:00

Every year real estate brokers get asked the same question: "Is it a good idea to list my home for sale in the last months of the year?"

Now, I realize that the standard industry answer sounds like an evasion, but it still is an honest one. The answer is: It Depends.

It depends upon your reasons for selling in the first place. Are you financially and mentally ready to move on? It depends upon the home's condition and its readiness for market. Are repairs and maintenance up to date? And it depends upon your tolerance for showing your home during a holiday season. With or without visitors, can you make the home available for showings?

If your answers are "yes" to the above questions, know that most Autumn and Winter buyers are fairly serious. Why look at homes in the cold and rain without serious intent to buy? There is typically a lighter inventory of properties. Your house may very well be better remembered in that case. Yes, there are some excellent reasons to list your home late in the year. Just be sure to discuss your goals openly and honestly with your trusted real estate broker.

Quality Never Goes Out of Style

2010-03-12T07:46:00.000-08:00

Our new Ballard listing proves all townhomes are not the same. You will find generous living spaces with beautiful appointments. Walk to shops and so much more...

3 Bedrooms, 2 full baths, 1 half-bath, 1 three-quarter bath.

Radiant hydronic heat

Gas range

Granite counters, Stainless appliances

Hardwood floors

See all the details:

612 NW Market St., Seattle, WA 98107 - presented by Mark Gibson

2566 - 6th Ave. W,, Seattle, WA | Powered by Postlets

2010-01-20T13:26:00.000-08:00

Just uploaded the Virtual Tour!

2566 - 6th Ave. W,, Seattle, WA Powered by Postlets

Seattle Real Estate Picking Up Steam

2010-01-18T06:22:00.000-08:00

Imagine my delight when my open house yesterday yielded over 3 dozen groups of visitors! Yes, it was a choice property (check the photo) new to market. Yes, it is located in a choice neighborhood - Queen Anne - in Seattle. Still, the day stands out significant because so many of my guests were actual buyers.

Don't get me wrong, I love the neighbors to pop by. They can create buzz about a listing and even help testify to the strength of a community. But to have a good number of buyers out on a not-so-wonderful Seattle afternoon felt great.

Are we turning a corner in real estate? If so, I hope it is a steady, sustainable rise.

To visit this lovely property for sale in Seattle's Queen Anne neighborhood, check out this link:

2566 - 6th Ave W, Seattle 98119

Keeping the Market Rolling

2009-12-06T11:22:00.000-08:00

First time homebuyers' credit has been expanded to include repeat buyers. Read all about here:

Make your Move

Call Mark Gibson or Joy Canova to be your real estate advocate and take advantage of this important benefit.

On the fence about buying your first home?

2009-03-22T08:34:00.000-07:00

Recent news about home loan defaults has reminded us how critical it is to prepare for home ownership. Indeed, looking to one’s finances and budget is the single most important activity before contemplating a purchase. Your CPA can advise you in matters of overall financial health, but many mortgage lenders can enlighten you on qualifications required to borrow.

Ask your Realtor for several referrals of lenders who provide great service to their clients. Choose the lender with whom you feel a connection, and have an in-depth conversation about home loans. Work to position your credit to buy at a good rate of interest.

Once you have done your homework, know that this is a great time to buy a home. Interest rates are still very good; property inventories are high, and sellers are typically willing partners in negotiating a fair deal. And now the government has provided a great incentive. Read on.

Are you worried about home prices dropping and losing money? Let’s logic this out: Easy money of the past put buyers into the market that really were not really qualified to hold onto their mortgages. This increase in the pool buyers drove prices up artificially. Now that defaults are occurring, prices have come back down. Homeowners who bought at the higher rates will need to hold onto their property longer to achieve the value of their purchase through equity. However, for those buying now, prices have already adjusted. The “easy” money of home loans is no more; thus protecting values of the current market prices better. It is important to remember that fluctuating prices in home values is typical, but over the long term, they trend up.

If you need more convincing, consider the latest tax credit for purchases of new homes in 2009. In order to infuse some energy into the housing market after the recent upset, the federal government has created a powerful incentive for 1st time homebuyers. You can received up to $8,000 in a tax credit, not a deduction, a credit!

Click here to read more about it:

Information on 1st Time Homebuyer Credit

New Construction: to inspect or not to inspect - that is the question

2008-05-01T07:17:00.000-07:00

Guest blogger to Seattle Real Estate Advocate is Farren West of Key Inspections, a comprehensive home inspection company highly recommended by NorthwestElegance.com.

Many people feel there is not a need to inspect new construction because the home has been "Code" inspected by the city. (This is an inspection provided by the local jurisdiction/city/state). And to a certain degree this could be accurate, but here is the logic from my perspective as a home inspector, and as a potential buyer.

First as the buyer. I believe median home prices in the Puget Sound area are running somewhere in the 400k range. The cost of an new construction home inspection runs about $400.

Therefore, at a maximum, if the home inspector found absolutely nothing wrong with the house, you could pay .001 percent of the cost for your home for an "unnecessary" inspection. And if that's the case, peace of mind for this minimal of an investment seems a good value to help you sleep at night. Moving and owning any home is stressful enough; to invest such a small amount for security seems like a "no brainier."

Now here is the other side. I have been inspecting properties for over 8 years, going on 5 here in the Pacific NW, and haven't found a single new-construction home without an issue. Small or large, most need some sort of attention. Some corrections are needed to prevent safety hazards -- those repairs should be completed immediately. Other times, flaws may not be critical now, but they may become costly if not corrected in a timely manner.

With new construction, sometimes the list of corrections is just that: a simple punch list with photos taken at the final walk-through to ensure all details are properly completed before the sale completes. Nevertheless -- and most people don't think of this -- no one has lived in the home yet. This is great, because everything is new; however, it also means that systems have not tested through live experience. No one has been there to detect all the little problems that come up with actual usage.

Here is a small list of things that would be tested during the inspection: running all the water in the home, flushing toilets, testing dishwashers for proper installation/functional testing, furnace/heat distribution, fireplaces, review in the attic/roof/and ending in the crawlspace.

This is not a definitive list but after all these systems have been tested and as much water as possible run through the home we end the inspection in the crawlspace.

There is a logical process to ensure we see every area twice in the home. The final look in the crawlspace is to see what has happened after all of the above ground systems have been tested. The crawlspace is not only a location to find leaks, but also a place to check to be sure all of the debris was removed after construction and that the area is properly sealed from pests.

Why is this important? The last thing you want to find out is one of the screens were damaged when the plumber was in the crawlspace now you have a rodent infestation. This could involve significant cleanup/cost/and potential health concerns. Maybe when the insulation contractor was installing the insulation, he blocked the vents in the crawlspace and now there isn't cross ventilation to take the excessive moisture out of the crawlspace leading to fungal growth on the joists/subflooring. Or perhaps the sewer line was never connected (or became disconnected) when the electrician went in the crawlspace to pull electrical for the new water fountain that was added in the rear of the home. Now you have problems, live sewer below a home not only a extreme health hazard, but now a significant disturbance to your life to correct.

The result? Contractors will now have to go into your home/crawlspace over the course of next couple of weeks/months to correct these issues. I could go on about the examples, but you get the idea. If you would like pictures of some of these issues, please send me an email at: Seattle@KeyInspectionServices.com

This sum of the issue is simple: if you want to be sure you're happy in your new home, new or old; have it inspected. If you want your clients to be sure they tell there friends about the great deal they got on their new home (thanks to a great Realtor) have new construction homes inspected.

Instead, if you want to tell your friends about not so happy stories about the kinds of surprises mentioned above ...heck! roll the dice and don't spend the .001 percent for the peace of mind...

Good luck, I hope this has been insightful...Any questions, would like to view a sample of a new construction report, etc. feel free to contact me @ Seattle@KeyInspectionServices.com

Moving into Seattle? Make it Easier.

2008-04-13T14:02:00.000-07:00

Moving to Seattle? Wondering how much more (or less) you will pay for your home in this region compared to your current area? What are the neighborhoods like? How does public transportation work? Questions can sometimes seem overwhelming when moving into a new city.

Let's begin with some good online resources:

NorthwestElegance.com has a great web page that includes community facts, transportation, school references, and temporary rentals, and more. Click here for the "Information Library".

For comparing home prices city to city, Coldwell Banker has an online resource that can't be beat: Click here for "Coldwell Banker's Home Price Comparison Index". (This can also be found in the above mentioned Information Library under "Useful Tools".)

Its a fantastic tool -- Say you live Atlanta, Georgia and own a home worth $200,000. You key that amount into the form, select your region, and then select Seattle, Washington and you find that the same house would cost $342,857 here, according to Coldwell Banker's latest collected data. Keep in mind, however, this is a relationship of price only -- not a reflection of current listings.

Ready for the easiest part?

Develop a relationship with a professional Realtor. Great agents know there is much to be discovered before one buys a home in a new city. Find someone who is willing to answer questions, send listings, carve out time when you make a planned visit, and, most importantly, provide time for you to talk over your particular situation. Having a reliable partner-agent can really smooth out the wrinkles in this kind of process.

Northwest Elegance is a Realtor team with Coldwell Banker Bain. We -- Mark Gibson & Joy Canova -- invite you to call or email us today. We have a great Newcomer's packet with facts, maps, and resources. Mostly, we would like to hear about you and your plans. How may we help you? Click for Contact Information.

PS. Our clients say we know how to keep the work of buying a house fun. That may be true -- we love what we do.

Doing Your Part as a Smart Buyer

2008-03-01T14:47:00.000-08:00

You were wise to enlist the help of a good Realtor. Now what? What is your role in this process? You know it must be more than looking at houses and picking one you like. And you are correct; and your actions will make all the difference to a successful outcome.

Yes, if you choose an advocate Realtor you can expect expert guidance and advice about the market, negotiations, and mitigating risks. However, you are the only one who understands what financial and condition risks you are able to comfortably withstand. Share your situation with your Realtor, but also be prepared to make the final decision in each issue that arises.

Please consider this chart to understand the critical role you play in a successful house purchase:

Your Agent & You

To learn more about wise choices as a buyer, read these blog posts:

Is this a good time to buy?

Your duty to read.

Great home inspections are intentional.

All listings are not alike.

How Far Will They Go???

2008-01-09T07:37:00.000-08:00

How far will your Realtor go to act in your best interests?

If a $300,000 property meets your needs, but you are qualified to purchase at $415,000, will your agent encourage you to consider that listing? Will you even learn about it?

How will your Realtor counsel you if you considering selling your house, but you are uncertain about the timing? Will you get unbiased advice about the possibilities of delaying your sale?

When considering an offer price, how hard will your agent work to get you the best (lowest) price? Will you have research of comparables available for your consideration?

Will your Realtor advise you on the merits of planning for a future purchase, rather than strain your current financial ability?

If you answered "yes" for each of these questions, good for you. You may have an advocate Realtor working for you.

I say "may" intentionally. Pay attention to the degree to which your agent pursues your best interests.

When your agent clearly works hard for your benefit without concern of their personal gain, you clearly have an advocate. That's Integrity!

Congratulations!

We did it! We found a house! Not so fast...

2007-11-22T18:26:00.000-08:00

Think finding the house is the goal? Think again. That is just part of the puzzle.

First you need a contract to offer to the seller. Just 10 years ago, the purchase and sale agreement (the contract for purchase) on my home was just 2 pages long.

Currently, a common contract is composed of approximately 10 different forms, is about 20 pages long, and can contain over 65 blanks and choices. To say it is a complex task is an understatement.

Even after the original negotiation for purchase, further agreements can be necessary for every contingency in the contract. There are specific time periods assigned to each condition response and even the absence of reply can mean an automatic yes or no depending on the party responsible.

Will the lender send the loan documents to escrow in a timely manner? If not, you may miss your closing date. Furthermore, the fees and monies escrow expects to be paid at closing should be checked for accuracy.

So what's the real goal? To find the house, yes, but also to close the deal with no unintended consequences. Pick the right agent that is dedicated to seeing you through the obstacles that spring up before closing -- select a real estate advocate!

How does one go about finding an advocate? Ask!

Ask your potential Realtor how they monitor a transaction. Are there regular communications with the lender -- "How are those loan documents for escrow coming?", with the escrow officer -- "When will I see the HUD-1 Settlement Statement?", with the title representative -- "Anything out of the ordinary in the title report that you can explain to my client?".

Look for an agent who has a thoughtful plan to keep you informed, watch important dates and times, and most of all, negotiate on your behalf.

For more information, check out the "About Us" page on my website. Then talk to my business partner or me about how we advocate for you.
http://www.northwestelegance.com/html/about.php

Give Yourself Some Credit: Easy Ways to Score Points with Underwriters

2007-11-21T08:14:00.000-08:00

We all know the phrase "buy low, sell high." Many of you may be wondering if now is the time to "buy low" in the real estate market. Prices are down, inventories are up, and interest rates are near historic lows. Let’s look at how a smart investor or homeowner can become loan ready, and prepare his or her credit profile to take advantage of the buyers' market. Whether you are looking to invest, buy, or refinance now or in the coming months, your credit is going to play a more significant role in today's tight-fisted credit environment than it has in the past. This article will help you put together the kind of sound credit profile that any underwriter can appreciate.

In general, underwriters analyze your overall creditworthiness from three angles: your credit score, your income, and your assets. Let's take a closer look at these three elements.

Credit Score. Your credit score represents your willingness or ability to repay debt. Scores can range from 350 to 850. When arriving at your score, the credit scoring system analyzes various elements of your current credit situation, including your debts, payment history, and credit types. It's important to note that payment history accounts for only 35% of your overall score, so it takes more than paying your bills on time to increase your score. In today's market, a score of 620 or below would be cause for concern, because even a small difference in your credit score can cost you big. In fact, Fannie Mae recently announced that effective March 1, 2008, any loan in which the borrower's FICO score falls below 680 will incur either higher interest rates or fees charged at the time of closing of up to 2.00%. For example, on a loan amount of $200,000, a borrower with a FICO score of 619 or lower, would be required to pay $4,000 or experience a higher interest rate. This means clean up your credit now or pay a higher price later.
But here's the kicker. Nearly 80% of all credit reports contain errors of some kind. Recent studies also indicate that about one-fourth of these reports contain mistakes so egregious that applicants could actually be denied credit. With this mind, the first step to putting your best foot forward is making sure everything in your credit report is accurate. To do this, visit http://www.annualcreditreport.com/ and get a free copy of your credit report right away. (Note: free credit reports do not include credit scores. Scores can either be purchased online or pulled by your mortgage professional.) Once notified of a mistake on your report, a credit bureau has thirty days to investigate and respond. If the information can't be confirmed, the item should be removed.

While you're online, be sure to visit http://www.optoutprescreen.com/ as well, and avoid the hassle of being bombarded with unsolicited mortgage offers, and make life a lot easier throughout the mortgage process. Finally, ask your mortgage professional to pull your credit for review as well and make sure that everything is accurately reported.
And what about those of us with a credit history we would rather forget? All is not lost. For individuals with spotty credit a lot can be accomplished with a professional credit improvement company. If you do decide to utilize a credit professional, plan on about 90 to 180 days for maximum results. An experienced mortgage professional can share other insights into the ins and outs of credit scoring.

Income. For an underwriter, your income is another tool to help calculate the overall risk of loaning you money. Let's be honest: If you're looking to get a loan in the next 6-9 months, it's unlikely that your income is going to change drastically in that period. However, whether you're self-employed or salaried, there are a number of tax decisions you can make today that could negatively affect your debt-to-income ratio (the amount you make each month and the amount you owe), which affects how much you're qualified to borrow.

In other words, talk to a mortgage professional about the common guidelines that allow for debt-to-income ratio (DTI). While some loans have been approved with ratios exceeding 50%, many conventional guidelines state that DTI should not exceed 36-40%. Depending on your overall profile, DTI may be able to reach as high as 45-50%, but it's best to keep this number as low as possible.

Finally, although it is still possible to get loans without income documentation, these loans are almost impossible to obtain without great credit scores, particularly if you're looking to secure a jumbo loan.

Assets. The more money you have available after closing, the less risk you pose in the eyes of an underwriter. This means any assets available above and beyond your down-payment. And down-payments are back in style. That's because 100% financing programs, while still in existence, are scaled back, and the costs for obtaining a loan with no equity have increased. In addition, many loan programs, particularly those that don't require income documentation, will now require that after closing you have ample reserves or certain liquid assets that are congruent with the income you say you are making.

If you're even thinking about buying or refinancing real estate in today's market, it's important to talk to your mortgage professional before making any financial decisions that could affect your loan profile, including opening or closing any credit accounts. More importantly, you have to act now. Timing the so-called bottom of the market is a very difficult task, even for the experts. Great deals on real estate are available in just about every market right now, and interest rates are still very attractive. If you are looking to purchase a home, think long term and don't focus on the next 12-18 months. For those trying to sell a home, now is the time to be realistic about the current market cycle and take action. Remember, anything you give up on the sale side will be captured on the buy side. Bottom line: Do what's right for you today, and it will be right for you tomorrow.

With many thanks, this information comes from Maryanne Coffman, S. Mortgage Loan Officer, Golf Saving Bank.

http://www.maryannecoffman.com/

Seattle Still a Strong Market

2007-11-20T07:05:00.000-08:00

Advice from Joy Canova and Mark Gibson of NorthwestElegance.com -- Agents with Coldwell Banker Bain

While much of the nation is experiencing a rapid slow-down in housing prices, Seattle remains a healthy market. We may not be experiencing the same frantic competition for listings as in previous years; however, properties in favored neighborhoods and in good condition can still move quickly. Without proper preparation, you may miss out on a favorite. Here are some tips to help your success:

Get pre-approved for a mortgage. You’ll be able to make a firm commitment to buy and make your offer more desirable to the seller. If needed, Joy and Mark have a list of lenders we can personally recommend. Have quick access your Earnest Money — in Seattle, typically 3-5% of the price offered.

Stay in close touch with your real estate agent to find out first about new listings that come on the market. And be ready to go see a house as soon as it goes on the market.
Scout out new listings yourself. We have the complete NW Multiple listings on our website at NorthwestElegance.com. Also, drive by your preferred neighborhood frequently. Maybe you’ll see a brand-new “for sale” sign before anyone else.

Be sure to contact Joy or Mark if you are interested in a “For Sale by Owner” – we will need to confer with the seller before we can represent you in a transaction of this kind.
Be ready to make a decision. Spend lots of time in advance deciding your home criteria so you won’t be unsure when you have the chance to make an offer.

Bid competitively. You may not want to start out offering the absolute highest price you can afford, but don’t try to go too low to get a deal. Do not write an offer “to see if...” Write to win! Keep contingencies reasonable. Joy and Mark can advise you on how to structure your offer that will keep the seller engaged in negotiations.

Restrictions, such as needing to sell your home before you move or wanting to delay the closing until a certain date, can make your offer less appealing. Joy and Mark can help you understand which properties are more likely to accept an offer of this nature.

Don’t get caught in a buying frenzy. Just because there’s competition doesn’t mean you should just buy. Make your offer reflect your personal value of the house. If you miss out on a particular property, do not despair; Joy and Mark are committed to finding you the home of your dreams!