Team Reba Real Estate

Selling a tear down ain't so easy…

Filed under: seller advice, real estate marketing, listing agent, environmental issues, single family home, Greenwood, remodeling, financing/lending, agent advice, investment property, inspection issues, zoning, safety issues, For Buyers, financial matters, For Sellers, Uncategorized — Reba Haas @ 10:40 pm

The brother of my partner has a name for what most of us would call a “tear down”, he calls it a crash down shack. Recently, a colleague of mine referred a new client to me to handle what he said would be a residential transaction in the Greenwood neighborhood.

After seeing the house, it is a complete ”crash down shack.” There are multiple pest organisms eating away at the wood framing (wood boring beetles and moisture ants, along with former termite damage) and there are items inside the house busting through the flooring. Fixtures for sinks are missing and the gutters have a veritable garden growing in them with no downspouts visible. The smell of moisture/water damage is obvious when you walk in the front door.

In doing research, I learned that there are no banks that will provide a land loan on this parcel since the structure still exists. With the house in such bad condition, it won’t qualify for conventional financing. Now, we are stuck with either a cash or a rehab offer. Not that many of those exist right now. Rehab loans for WA State, as I have heard from Eric Aasness of Countrywide, only allow up to $50,000 in funds for updating/upgrading a property, and it is unknown if this will be enough to make this house habitable again. The concept of tearing the house down will likely cost the client about $20,000 for tear down and haul-away.

Are any of these the right things to do? Maybe not.

My suggestion was that the client look at the idea of rehabbing the property on her own, then putting it in the rental market for a while till our market starts turning around so that she can recoup her expenditures. She owns it outright and could do the work for less than others because she doesn’t have the carrying costs of a mortgage associated with the cost of rehab.

Why do I think this is the right path to take? I’d been looking into whether or not she could split the lot (zoning is SF5000) and heard from a builder’s agent that it was unlikely because of the size of the lot, which is under 6000 sqft. The lot, while in a somewhat desirable north Seattle neighborhood, sits too close to Aurora to fit most people’s idea of a great custom home or spec site.

If the owner were to put $50,000 into fixing it up and then rented it out for $900 per month, she’d be making a return on her investment of $50,000 (borrowed) as well as the increased value of the property when it sells later on.

What would you do?

Comments Off

Greenwood Aurora Involved Neighbors have more plans in the works

Filed under: Transit, Phinney Ridge, transportation, Greenwood, Aurora, Seattle, Greenlake, local events, household tips, safety issues, neighborhood info, Uncategorized — Reba Haas @ 7:09 pm

A Community Engaged
Join your neighbors. Envision the future of Aurora
URBAN DESIGN MEETINGS
WHERE & WHEN:
Greenwood Senior Center at
525 North 85th Street
from 6:30 – 8:30 pm
• Monday, 11/10 6:30 – 8:30 pm
What’s here now? What’s your
vision?
• Monday, 12/08 6:30 – 8:30 pm
Presentation and feedback of
preliminary vision and urban
design ideas.
• Monday, 01/26 6:30 – 8:30 pm
Presentation of refined vision
final urban design plan.

Comments Off

October 2008 newsletter online

Filed under: buyer's agency, financial matters, financing/lending, buyer advice, single family home, seller advice, For Sellers, For Buyers, household tips, products, inspection issues, investment property, staging, safety issues, Uncategorized — Reba Haas @ 12:52 pm

Here is a link to my “October Real Estate Update” which is our monthly newsletter for clients and friends who are interested in the local and national real estate market.This Newsletter is full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter.This month’s issue includes topics such as:

“Five Key Areas to Pay Attention to When Buying a Home”;
“Deploy A Strategic Assault On Your Mortgage Application”;
“Too Much To Store and Too Little Space”;
“Finding Discounted Homes For Sale”;
“Ten Fall Maintenance Tips”;
“Understanding Your Electrical System Can Help You Spot Problem Areas”;

Plus a roundup of September real estate activity as well as much more advice and information.

I hope you enjoy this monthly newsletter. If you have any comments, please e-mail them to me. Or, if you would like to see a certain topic covered in future months, let me know that too!

Comments (0)

Some of our favorite design ideas…

Filed under: remodeling, design, safety issues, household tips, products, Uncategorized — Reba Haas @ 8:32 pm

When I bought the house I currently live in, back last year (2007), there was already in a place a wonderful open stairwell that I liked because of its modern sensibility and I hope to update a tad more beyond the new flooring (engineered light maple wood) I had installed. Right now the old railing system is in place but I hope to eventually change what that looks like to update it and to make it meet more of today’s code requirements since the current railing system is shorter than current systems.

In DWELL Magazine there is a company I’ve seen called MILK Design. They have multiple modern style designs that are gorgeous and many which are almost artistic in styling. There are also many other firms I’m sure that are out there, but this is one that I am always stopped by the photography of the designs.

Comments (0)

Considering a wood stove? Check out the EPA Certified list for 2008 and look for available rebates for replacement wood stoves

Filed under: Tacoma, environmental issues, vacation property, 2nd home, Pierce County, Snohomish County, buyer advice, non-profit highlight, local events, products, household tips, safety issues, neighborhood info, Uncategorized — Reba Haas @ 4:31 pm

I recently received an email from John Lasswell, a home inspector, with details about a rebate program that the Puget Sound Clean Air Agency has in place for several areas of Snohomish and Pierce Counties. You can find the info via this link.

You can also find the list of EPA certified wood stoves via this link.

These should be useful for those of you that live in some of the farther out sections of Puget Sound where a wood stove is sometimes the only, or best, form of heat for your property. Particularly in more remote areas where cities start getting into the foothills of the Cascade Mountain range.

Comments (0)

I wonder how this report will push owners of commercial space to update their properties to meet “green” requirements?

Filed under: real estate marketing, listing agent, agent advice, financial matters, buyer advice, green home products, LEED, built green, environmental issues, land use, For Sellers, legal issues, property management, products, zoning, inspection issues, For Buyers, safety issues, investment property, Uncategorized — Reba Haas @ 3:58 pm

At a recent CCIM conference that I attended, one of the sessions covered the movement toward Built Green and LEED Certified commercial buildings. For WA State, we’re in a good position for many companies because the current building codes for our state already meet many of the compliance elements of the LEED certifications. The presenters stated that, on average, it only added anywhere from 3-10% to the cost of construction to go for a LEED certification and the long run prospects for increased sale or leasing of the space covered or made up for this differential.

They also made mention that a large number of companies are putting into their business plans a requirement to “go green” and part of that includes the work environment. The thought goes that if shopping for a new location, the business will gravitate to the newer, “green” building over the older non-green building.

Well, that’s all well and good, but I couldn’t help but think to myself, if all the businesses are pushing to be in new construction that meets these green or LEED standards, what will happen to the old buildings? Will they just sit vacant? Does that foretell a larger problem down the road? It’s too early to tell, but I don’t see us blowing up all the old inventory just to make room for the new “green” alternatives. That doesn’t make any sense either.

To read what others have to say about this trend and how it will affect employers and landlords over the next few years, take a look at this article I received this week from my CoStar membership (a commercial property listing site). The study that is cited says that within 3 years landlords who aren’t moving toward the sustainability movement will be getting hurt in their wallets.

This applies not only to commercial buildings that house businesses, but for those that house residential condos. The first Silver LEED certified condo building in Seattle was the 5th & Madison building. At a recent interview held by a marketing firm, hired by Vulcan, questions were asked whether or not LEED certification was important to buyers.

If you’re a commercial property owner, it would be wise to start looking at ways you can upgrade or update your property to meet the demand for sustainability. Heck, have you seen the recent IBM ads talking about energy consumption? Sure, the greenwashing does still have to do with money (profits), but you can be profitable and “green” too, can’t you? Doesn’t helping a company be more profitable help them decide to choose cleaner options over more negatively impacting the environment? If the message of green can go that high up the business food chain, it’s going to trickle down to the smaller players too.

And, if your property can help reduce a company’s legal liabilities for worker health issues which in turn helps productivity at the business, and provide a positive marketing message when selling or leasing the property, can it be all that bad?

You tell me… I’m open to hearing what you’re doing….

Comments (0)

How well do you know what is happening to your vacation property when you’re not there?

Filed under: buyer advice, agent advice, online networking, vacation property, 2nd home, For Buyers, landlord/tenant, property management, household tips, investment property, safety issues, Uncategorized — Reba Haas @ 10:40 am

This article from REALTOR.com Magazine is a bit disturbing when you read that people who owned vacation properties were coming to their abodes and finding strangers living in the houses. It seems a supposed real estate agent (yet to hear if it was verified) and his assistant were renting out people’s places without their knowledge utilizing the well known Craigslist to advertise the openings. I’m wondering if the agent was the guy who sold the properties to these owners to begin with and this is perhaps how someone knew for certain that these were only part-time homes for the owners.

A lot of people buy 2nd homes but don’t always have a method of checking in on their place while they are away. Case in point, a good way to put in a monitor came from Eric Aasness (one of our co-contributers) who has some cabins out on Hood Canal that he ended up having to put remote cameras on when he and his wife noticed that some of their wine and food was going missing. Seems they had an errant plumber on their hands - they dubbed him “the hot tub bandit.”

Perhaps remote property management - even if a stepped down version of what rental property management people handle - is a line of business someone could take up and do well in markets where lots of 2nd homes exist? Especially if there is no rental pool or short term rental aspect to handle.

Comments (0)

For sellers with septic systems in King County… know your responsibilities!

Filed under: buyer advice, title & escrow, listing agent, seller advice, environmental issues, septic, single family home, agent advice, buyer's agency, inspection issues, household tips, legal issues, safety issues, For Buyers, neighborhood info, For Sellers, Uncategorized — Reba Haas @ 7:05 pm

To get all the details you need with regard to septic systems and what’s necessary for you to do when selling your home, go to this handy website set up by King County and their Wastewater Management and Public Health Services Dept. There is also a section that will provide details on how to use and care for a septic system as well.

As a seller, you have responsibilities and paperwork that is required. As a buyer, you should be prepared to look for these details during your inspection process.

Agents should be familiar with this process as well, and if you (Mr. or Ms. Agent) aren’t, then you should do a little reading too.

Most septic (aka onsite sewage) systems are found in outlying areas of Puget Sound or in County controlled areas. If you aren’t in King County then you should check with your local county government website or contact the local county office for the info you need for your area.

Comments (0)

What makes Condo Insurance so tricky?

Filed under: buyer's agency, financial matters, agent advice, financing/lending, condominium, buyer advice, For Buyers, safety issues, legal issues, products, household tips, inspection issues, investment property, Uncategorized — Gerald Grinter @ 3:32 pm

This is a coverage that has become near and dear to my heart as I am now a newly minted condo owner (Thank you Rebecca Haas and Eric Aasness). As an insurance agent I have always been amazed at how people would take all of this time, money and effort to buy the condo of their dreams and expect someone else to protect (i.e. the Master Policy) it. Let’s face it, the Master Policy’s the last thing you’d want to read. It’s boring and full of insurance misto-babel. Some master policies cover more than others but in a nut shell it is designed to protect the building and common areas and its purpose is to make sure the structure and common areas can and will be rebuilt in the event of a loss.

There is no coverage for your personal property such as your clothes, flat screen TV or the new sofa you just purchased. So everything from the walls in are your responsibility. Items like fixtures, cabinets or appliances maybe covered by the master policy but often are not especially if you’ve remodeled your place in any way.

This is where I, your friendly insurance agent, enter the picture and ask you if you feel safe knowing your neighbor has a candle fetish and another can’t even boil water to make tea. I believe condo insurance should be thought of the same as home insurance. All too often it has been looked at like renters insurance and considered optional and it also doesn’t help that it is not a required condition for closing your loan. Thankfully, the new construction condo I just purchased DID require proof of individual unit coverage prior to closing any sales.

To get an idea of what condo coverage costs I always recommend you start where you have your auto insurance coverage. Most companies give a discount for having more than one policy with the same company. I also think this might be the right time to review all of your insurance coverage and make sure you are maximizing discounts and coverage.

Thanks for listening to your favorite online and blogging insurance agent. Feel free to call or email me with any questions about this or any other type of coverage. I wanted to share some of my thoughts about condo coverage in the hope that it might help all of us condo owners out here. Take care and be well.

Comments (0)

Mortgage Fraud in WA as defined by the new law and local MLS - do you think this might qualify?

Filed under: financing/lending, agent advice, buyer's agency, listing agent, buyer advice, single family home, seller advice, financial matters, land use, inspection issues, household tips, legal issues, investment property, safety issues, For Sellers, For Buyers, Uncategorized — Reba Haas @ 11:28 am

So, recently I have had a client interested in a house that has a major problem with an attached garage and den - added after the original house was built. The problem with the garage and den is that it is impacted by a steep slope that has eroded part of the foundation beneath it and it is slowly beginning to slide down the hill. A geotech engineer’s report is included with the seller’s disclosure statement that spells out all the problems with this site and gives the engineer’s recommendations which include removing this portion of the structure completely.

Now, let’s take a look at what is the most likely scenario for a buyer wanting to purchase this house and the financing they might need to procure - if they don’t have all cash to buy it. My personal opinion is that since the garage and den are recommended for demolition and either rebuilding or just plain extinction that it is encumbent on the new borrower to give all this detail to a lender. Chances are, in today’s more risk averse lending climate, the building would qualify only for a construction or a rehab loan (perhaps the FHA 203(k) program) with the lender being given a detailed list of the problems and the plans for reconstruction - typically a timeline for completion is necessary for these and are limited to 6 months to 1 year.

My interested buyers currently have only looked at conventional loan packages so I directed them to inquire from their lender about these other options. I also emailed the listing agent to ask him if he had a lender that was aware of the problems and if they perhaps had a loan package that might suffice for purchase of the property.

Here is his reply with details of individuals/firms redacted:

Greetings,

I spoke with my lender, XXXXXX, at XXXXXX XXXXXXXX and she talked with

her underwriter who told her that as long as the appraiser didn’t mention

it, the lender would not be concerned about it.

We should have the cities approval on the new permit for the garage in the

next week or so if your clients are interested in building the new garage.

My clients have lived with it as it is since 1994 with no problems.

Let me know your thoughts.

This same agent told me that his clients had never lived in the property and that it had been a rental the entire time they owned it. So, yeah, I’ll bet they never had any problems with it.

Now, let’s take a look at the language that just came out from the NWMLS regarding the new law enacted in June 2008.

“Under some circumstances, omitting information about the property may be considered mortgage fraud. House Bill 2770, which became effective June 12, 2008, makes mortgage fraud a class B felony, punishable by confinement not to exceed ten years, or by a fine in an amount not to exceed $20,000, or by both confinement and a fine. Mortgage fraud has always been illegal, but the new law makes it clear that Washington lawmakers are increasing their efforts to punish those who perpetuate fraud.

What is considered mortgage fraud under House Bill 2770?

Section 9 of House Bill 2770 states that it is unlawful for any person, in connection with obtaining a residential mortgage loan to directly or indirectly: (1) defraud or materially mislead any lender or borrower; (2) knowingly make any misstatement, misrepresentation, or omission during the mortgage lending process knowing that it may be relied upon by a mortgage lender or borrower; or (3) use or facilitate the use of any misstatement, misrepresentation, or omission during the mortgage lending process with the intent that it be relied upon by a mortgage lender or borrower.

Section 10 of House Bill 2770 provides that any person who knowingly violates section 9 or who knowingly aids and abets in the violation of section 9 is guilty of a class B felony. ”

I don’t know about you - but I think that this might qualify if everyone just hopes that the appraiser misses the problem. Anyone else got a comment on what they think of the situation? I’ve told my clients to run, not walk, away from this one.

Comments (0)

November 18, 2008

Selling a tear down ain't so easy…

October 30, 2008

Greenwood Aurora Involved Neighbors have more plans in the works

October 1, 2008

October 2008 newsletter online

September 30, 2008

Some of our favorite design ideas…

September 24, 2008

Considering a wood stove? Check out the EPA Certified list for 2008 and look for available rebates for replacement wood stoves

I wonder how this report will push owners of commercial space to update their properties to meet “green” requirements?

September 7, 2008

How well do you know what is happening to your vacation property when you’re not there?

August 7, 2008

For sellers with septic systems in King County… know your responsibilities!

August 1, 2008

What makes Condo Insurance so tricky?

Mortgage Fraud in WA as defined by the new law and local MLS - do you think this might qualify?