Buying Process

If you are shopping for a home in Seattle, you may already be aware of the seller’s disclosure.  It doesn’t matter if you are shopping for a condominium, townhome, floating home, single family home, or any dwelling of up to four units, a seller’s disclosure is required by law. 

In Washington, a home seller is required by law to disclose any and all “material facts” about the home or title to the home that they are aware of.  For Seattle home buyers this is important.  When you go to buy a home you want to know what the condition that home is in.  That is why we always recommend an inspection and sewer scope for any home buyer.  The seller’s disclosure provides another source of information on the condition of the home. 

So what is a seller required to report and maybe more importantly what are they not required to report?  The rules vary from state to state.  Here in Washington state, a material fact is defined as any fact pertaining to the home that would significantly effect the value of the home.  You can already see that there is some ambiguity to that statement.  What is not “significant” to a Seattle home seller, may be “significant” to a Seattle home buyer.

To try to clear up the confusion, each individual multiple listing service, provides a handy dandy check list for home sellers to fill out.  It attempts to address each area that may be of “significant’ concern for a buyer.  If a seller indicates a concern in a specific area they can elaborate on the concern.  It also raises a red flag for buyers to do a little more digging to find out the facts.

Things that must be reported on a seller’s disclosure are:

• Damage to systems: Plumbing, electrical, roof, foundation, etc.
• Environmental Hazards
• Pest Infestations
• Boundary Disputes
• Law Suits
• Past Flood Events
• Condition of Title

It is also important to note that a Seattle home seller is not required to do any kind of inspection or digging to find out if there are in fact any such concerns.  They are only required to report what they know or would be expected to know as the result of living in the house.

It may surprise Seattle home buyers to know that it does not include such things at crimes committed in the home or any other notorious history of the home.  (the one exception to this rule is if the home has been used as a meth lab)  Notorious histories, hauntings and illegal activity is considered “stigma” and while necessary to report in many states, it is not mandatory to report by a home seller in the sate of Washington.

A seller’s disclosure also does not include any information about the neighborhood.  A buyer is expected to do any “neighborhood review” on their own during the inspection phase and come to any conclusions on their own.  This includes crime rates, school information and future construction in the area.

So buyer beware.  While the seller’s disclosure is a great tool for the Seattle home buyer, it is not inclusive.  Additional research is necessary to make sure you are fully aware of what you are buying.

Give me a call if you need help.

Rob Graham, Managing Broker

Windermere Real Estate

206-321-6349

robgraham@windermere.com

Popularity: 1% [?]

A client of mine, in love with the amazingly low interest rates, locked their loan for 55 days.  We had submitted an offer on a home they liked but had not yet completed the inspection.  As we contemplated an inspection response, the question arose, “If we don’t move forward on this home, do we lose our loan lock?”

Locking the loan is the banks assurance that if you close on a home within the lock period, provided that the home meets the qualifications that you have been approved for, you are guaranteed specific terms of the loan.  But what happens if you switch homes or the price adjusts as the result of the inspection or appraisal?

Rest assured the loan lock is based on the qualifications of the buyer not the home specifically.  So long as the home closes (or for that matter any home close) within the lock period, and the home qualifies for the specifications of the loan, a buyer will still be able to get the terms of the loan lock. 

This very question is typically why we do not advise buyers to lock a loan until we are pretty darn sure we will close.  With interest rates as attractive as they have  been lately however, some have been quick to pull the trigger.  That is fine, but if for some reason you are not able to close within the lock period, it will cost you to extend the lock.  Sometimes a lock can be extended, but not always, so be careful. 

Give me a call if you need help.

Popularity: 1% [?]

Seattle home buyers – If you have found the house of your dreams and are curious if there is an old oil tan on the property, feel free to check. 

It is a smart move as part of an inspection or even prior to making an offer on a property to see if there is an old oil tank on the property.  To find out call King County Department of Development and Environmental Services at 206-296-6600. 

For information about having a tank decommissioned you can check out their web site at:

http://www.kingcounty.gov/property/firemarshal.aspx

The county only has records that go back about 12 years, but if they have information it is good to know if a tank has been legally decommissioned or just rotting somewhere on the property.  Decommissioning doesn’t mean that it has been removed necessarily.  Decommissioning can mean cleaning and capping and then just leaving it in place.  Generally there is no harm to the environment if they have been properly decommissioned  and certified by the county.  It is a good thing to know however.  More information is always best when buying a home.

Popularity: 8% [?]

The chart below shows that the average number of days it is taking to sell a home on average in Seattle dropped last month.  Part of the trend is seasonal and another part is the fact that there was a tax credit expiring at the end of last month.  Activity does not seem to have dropped of however and it will be interesting to see if the trend continues. 

As of April, the average time to sell a home was about two and a half months with sellers getting 95% of their original asking price.

Stay tuned!

—————————————————-

Rob Graham

Windermere Real Estate

robgraham@windermere.com

206-31-6349

www.robgrahamrealestate.com

Popularity: 3% [?]

I recently received a question from a reader of this blog about short sales.  I promised a post to give you all the information you need regarding short sales.   As I started writing I realized that there was a lot more information then would fit neatly into a single post.  So over the next few days I am going to post a few different times to cover the topic.

First of all lets clear up what a short sale is.  There is a lot of terms floating around out there and it can be pretty confusing.  Here is what you need to know.

Short Sales – A short sale is where a seller is trying to sell there home but they will not make enough money for the sale of the home to fully pay off the money they owe on it.   They are literally selling the home short of what they owe on it. Because the  bank is going to take a loss on the loan they granted the owner, the bank will insist on being involved in the process and reserve the right to give final approval to any sale of the property. 

Distressed Home – A distressed home is one where the owner is at least 30 days behind on a mortgage payment.   They may or may not be interested in selling the home. 

In Foreclosure – A home in foreclosure is generally more then 90 days behind in payments and the bank has begun the process of taking possession of the home.  When the bank gives you a loan for the home, you agree that if you fall behind on the payments, the bank can take possession of the home.  They will then sell the home to recoup some or all of the money they have lost from you not making your payments.

Bank Owned – Once the bank forecloses on the home the bank will take possession just like an owner would.  They will generally turn around and try to sell the home quickly to get their money back. 

That’s enough for today.  Stay tuned for how the purchase of each of these kinds of homes differs.

Give me a call if you need help.

——————————————————

Rob Graham, Seattle Home Buying Expert

Windermere Real Estate

206-321-6349

robgraham@windermere.com

www.robgrahamrealestate.com

Popularity: 1% [?]