Posts Tagged ‘seattle home buyer’

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

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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: 2% [?]

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!

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Rob Graham

Windermere Real Estate

robgraham@windermere.com

206-31-6349

www.robgrahamrealestate.com

Popularity: 3% [?]

There is nothing you guys seem to like more then real life examples of practicing what I preach so here you go:

I have a client who is purchasing a home in Maple Leaf.  The seller’s disclosure indicates that the sewer backed up and flooded the basement two years ago but has been fixed.  Our inspection including sewer scope, indicates that in fact the sewer was not fixed and due to root intrusion, is due to flood again in the near future.  Considering the $25,000 it cost to repair the damage last time, my clients are very happy they paid the $230 for the sewer scope.  It looks like the seller is going to pick up the tab for repairing the line the right way. 

Don’t be penny smart and pound foolish.  Get the best inspection you can and include a sewer scope.  Not doing so can cost you tens of thousands later. 

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Rob Graham, Seattle Home Buying Expert

Windermere Real Estate

www.robgrahamrealestate.com

206-321-6349

robgraham@windermere.com

Popularity: 2% [?]

I received a question from a friend of mine the other day and thought the answer might be of interest to some others of you. 

She is considering buying a vacation property on the coast and was wondering how to approach finding a lender.  Here was my response to her:

R,

Congrats on considering buying a little vacation home.  Sounds like fun. 

Here is a link to a page on my web site that has great mortgage reps that would be happy to help you.

http://robgrahamrealestate.com/Recommended%20Home%20Loan%20Specialists

As far as advice is concerned, start with your credit score.  You can ask for a copy of your credit rating for free from the mortgage person you speak to.  They will need to pull your credit to qualify you for a loan.   Once they have a copy you can ask them for it, rather then you pulling your credit and then having a bank pull it again.  Once you have a copy make sure all the info on it is correct and write to each of the credit reporting services individually if there is inaccurate information.  They are required by law to research and such written requests.  If your credit isn’t spectacular you may want to subscribe to one of those on line services that monitor your credit for you.  There is a monthly fee involved but they do offer some good advice for how to improve your credit score such as, getting your credit card totals down to less then 1/3 of what you can possible borrow. 

When thinking of financing, start with the end in sight.  Decide what you are comfortable for in a monthly payment.  Start with your existing monthly payment and decide how much more you feel comfortable paying.  Then you can test your theory.  Next month put the extra amount away in savings and see how it feels to not have access to it.  If the amount feels to high or too low you can adjust. 

The other nice feature of this approach is that if you keep doing this over the next few months you can accumulate a nice little next egg to use towards closing costs, moving expenses or even new furniture.  Either way you won’t suffer sticker shock of a new monthly payment. 

One more quick piece of advice:  Don’t try just one mortgage person.  If you have a relationship with a bank you may want to start there, but also try at least one broker and even a credit union if you have access to one.  Each offers slightly different products and services and you may find a better deal by shopping around a little. 

If you ever have a question, don’t hesitate to contact me.  I’ll be happy to help and even

feature your question her on the blog. 

Talk to you soon,

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Rob Graham, Windermere Real Estate

Seattle Home Buying Expert

206-321-6349

robgraham@windermere.com

Popularity: 2% [?]