Archive for June, 2009

We were all excited when the federal government announced in February that first time home buyer’s were going to receive a true tax credit for any primary residence purchased before December.  The tax credit was an extension of a previous $8,000 tax credit from last year.  The difference being that this one did not need to be repaid.  The tax credit has been beneficial in boosting first time home buyers to get off the fence and make a purchase.  More however could have been done.

When the tax credit was being discussed in congress, there were several versions of the bill that would have allowed for a credit as high as $15,000, and have the credit available to all home buyers not just first time home buyers.  At the time the government that such a move was too aggressive and would lead to an over correction in the housing market. 

Now it is several months later and the recession is being more tenacious then expected.  The housing market has seen some improvement but nothing like what was hoped.  That result isn’t surprising considering that first time home buyers make up only about a quarter of all home purchases on average.  So what about the other 3/4?

As we speak, there are several (four at last count) versions of a bill circulating around congress looking for support.  Each is in favor of extending the tax credit to all home buyers and extending the deadline to the middle if not the end of next year.  The politics behind the process is slowing the process down.  Many senators see such a bill as a being a big boost to the economy and a great item to get your name on for future political aspirations.  As such many are unwilling to allow their name to be second or third on the bill.  Hence the four bills floating around congress. 

The good news is that there seems to be widespread support for extending the current $8,000 first time home buyer credit beyond the current December deadline, and also a lot of support for extending the credit to all home buyers.  They may also increase the amount of the credit but none of the bills currently in formation include such a provision. 

Stay tuned.  I’ll keep you posted.  Hopefully by the end of summer we will have a broader bill.  I would be really excited is we did.  I can’t think of much that would help stimulate the housing market more then free money from the government.  After seeing the effect the bill has had on first time home buyers, one aimed at all home buyers would be a welcome sight.

Give me a call if you want help searching for the perfect home.  Interest rates have dropped and there are plenty of great homes out there to see.  I’d love to be your agent.

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Rob Graham, Accredited Buyers Representative

Windermere Real Estate

206-321-6349

robgraham@windermere.com

Popularity: 100% [?]

For a while now FHA loans have represented the best option for first time home buyers.  With the lowest down payment required in the industry (3.5%) and greater flexibility on qualifying and source of funds for closing, they are nearly all I see with first time buyers right now.  First time buyers are also far more likely to purchase condominiums, so the news that the FHA approval process has changed is big.

As things stand right now, if you are shopping for a condo and have been approved for an FHA loan, you have two choices.  Find an FHA approved complex to purchase in, or find a condo you like and ask the association to complete a spot approval.  The spot approval is basically a checklist to indicate the economic health of the complex and association.  If certain criteria are met, the loan goes through just fine.  If there are problems, you will need to keep shopping.

The rules however will change as of October.  The spot approval will no longer be an option.  That means that if you have an FHA approval you will not be able to purchase in a not FHA approved complex.  This is a big deal because very few condo complexes are FHA approved.

So if you have been approved for an FHA loan you will have the following options:

1.  Only shop in FHA complexes – This is an enormous pain because very few complexes are approved.

2.  Give up on the condo idea and buy a house – This means you will most likely have to settle for a much smaller home and may not be able to get into the neighborhood you want.

3. Buy before October.  The rules don’t change until then.  We can still get a spot approval so long as the condo closes.

If you currently live in a condo complex that is not FHA approved, start lobbying the association to get approval now!  It will make it much easier to sell you home at a later date if it is FHA approved.  Those that do not have FHA approval will be at a real loss.  That means longer times in general to sell and for generally less money. 

If you want help finding a condo, give me a call.  I love shopping with condo buyers.

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Rob Graham, Accredited Buyers Representative

Windermere Real Estate

206-321-6349

robgraham@windermere.com

Popularity: 43% [?]

If you are a home buyer in Seattle with kids, this post is for you.  You are no doubt concerned about having your children enrolled in the school district you plan on having them attend next year.  But enrollment is going on now and you haven’t found your home yet and may not move or several months.

Here is what you can do now.

Contact the enrollment office for the school district you plan on living in for the coming school year. 

Explain to them the situation(Don’t try to be cute or misrepresent your situation.  Be perfectly open and honest with them)

Here is what you say.

“Hello.   My name is ————.  My son/daughter is going to be entering the —–grade next year.  We currently live in the ——- school district but plan on moving to the ——– school district by September.  What can I do now to enroll my child in your district for the fall?”

Believe me, they deal with these situations all the time and know what to do.  In many cases you can submit a boundary exception for your children now.  That way if you move after the start of school in September, they don’t need to start school in one district and transfer to the other.  They can start school in the new district even if you have not moved by the start of school. 

In many cases the district may wish to have some contact with your agent, or see some kind of documentation that you actually intend to move before the start of school.

One more thing to keep in mind.  Finding a home and actually moving takes time.  We are only about 2 1/2 months from the start of another school year.  

If you are hoping to find a home to move into by September, NOW IS THE TIME TO BE SHOPPING!

Lets assume for a moment that you are shopping for a home right now and find the home of your dreams tomorrow.  Even if you are lucky enough to get the home, it takes on average 30 – 45 days to close on a home.  That means that even if you wrote an offer today and everything went great, you would not be moving until mid July.   Given that school starts in early September, you will want to get started in the search quickly.

Give me a call today and I’ll show you how to find the home of your dreams for free!

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Rob Graham, Accredited Buyers Representative

Windermere Real Estate

206-321-6349

robgraham@windermere.com

Popularity: 4% [?]

So you’ve decided to buy your first place.  Most likely you will be at least considering a condominium.  They are some of the cheapest ways to get your toe in the door of homeownership.  Buy if you have a pet you want to make sure that the complex you are considering will allow you to take Rex or Fifi with you.  So what are the rules for moving into a condo complex with a pet.

The answer is that it depends.  Each individual condo association reserves the right to make whatever rules they see fit for allowing or not allowing pets.  Many of the more established associations have rules that are based on problems they have had in the past and can be very specific.  Some associations have no rules at all on what pets you can keep. 

The City of Seattle does have some rules that no association can violate.  In particular, they insist that you can not have any exotic or illegal pets.  (That’s right, you can’t run an alpaca farm out of your studio condo)  They also have limitations on some dog breeds that are allowed within city limits.  For example there are laws against wolf mixes. 

Many associations put a limit on the number of pets you can have.  Two to four seems to be the breaking point.  Many also put a limit on the size of your pet.  20-40 lbs is typical.  Most do not specify what you can have if they are self contained such as fish or anything in an terrarium.   Some do however limit the size of the tank you can have for fish, in case it ever breaks or if the weight is a concern for the structure.   Keep in mind that if your family of tarantulas gets out and terrorizes the neighbors, it is a sure bet that the next association meeting will amend the rules to limit your furry friends. 

What rules are in place for a specific association can usually be found out in advance.  A call to the association, listing agent or owner can usually clear up any questions.  Regardless, be sure that your buyer’s agent includes the right to review the rules and regulations and retains for you the right to walk away from any offer if they are not to your liking.  This kind of clause is typical in real estate transactions for condos.  If a seller refuses such a clause, they are generally trying to hide something and I would walk away from the deal. 

Also, keep in mind that association rules can change at any time.  So if you have your heart set on a Burmese and in a few months the rules change to limit size of dogs you may be out of luck. 

Happy Hunting.  And as always.  Let me know if you need any help.  I am always looking for new clients.

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Rob Graham, Accredited Buyers Representative

Windermere Real Estate

206-321-6349

robgraham@windermere.com

Popularity: 25% [?]

Here is a video I created a few months back.  The information is still as relevant as it was then. 

Let me know what you think of the video.  I am experimenting to see if I want to make it a regular.  Part of the blog.

As always if you need help, you know where to find me.

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Rob Graham, Accredited Buyers Representative

Windermere Real Estate

206-321-6349
robgraham@windermere.com

Popularity: 5% [?]