Julie A. Hall, MBA

Sakura, great question! I would meet with a mortgage professional and discuss the numbers so that you know what your payment is compared to your current rent.

As far as investment time, to avoid capital gain tax on the profit of selling your condo, you need to live in that residence for 2 out of the past 5 years, so I agree with Ken Jacobs that planning on holding the investment for at least 5 years is a good idea. Plus, you'll get appreciation and get to customize the place to your liking! However, remember neutral elements are good for resale :)

As far as location, that is something that you need to investigate on your own. I cannot steer you in any one neighborhood. Go visit the neighborhoods that you like and if you're comfortable, you should consider it. The current issue of Seattle Magazine (on stands now) talks about up-and-coming neighborhoods and gives a lot of great information.

Note that in DT Seattle many of the planned new construction condos was put on hold, so the demand will be higher than supply in the next few years. It is more expensive to live in the city than have a commute, so the price/SF will definately be higher, but it's a different lifestyle!

Enjoy your house hunting. Real estate is always a good investment for the long-term. The tax deductions are sweet, you get a place to call your own, and you put your money toward something, where rent doesn't.

Cheers! - Wed Jun 11 2008, 19:47

David, as Brian noted already, it is very important to interview a few Realtors and get a Comparative Market Analysis done so that you know what your home is worth in today's marketplace. There can be a lot of confusion w/ the media today, but this area is still strong: job growth, Forbes rated Seattle as one of the best places for real estate, beautiful landscape, etc.. Pricing: I would suggest putting more weight on very recent (2 months or so) and current Pending sales as a stronger basis for a aggressive price than actives. It is important to look at the current Active listings with similar features because that is your competition, but the Pending sales show what homes buyer's are actually writing offers on. When you meet with a Realtor you should get a Net Proceeds that will deduct all of the costs of sale (generally about 8.5% total) from the expected sales price -- you will know if you're short in funds at that time. Make sure that you take into account the new Distressed Homeowner Law so that you're signing the correct listing agreement; there are 4 criteria to determine if you're in the "distressed" situation. I don't know your complete financial situation, so talking to your accountant would be a good idea; getting a loan to cover the costs of selling doesn't sound like a good option, but it's up to what your goal is & how quickly you can pay off that loan so you're not paying for it for the next 10 years. Overall, make sure that your home is staged, extremely clean inside and out (curb appeal!) and that the pictures are professionally taken -- showcasing your home in the marketplace in as best condition as possible will get it noticed by buyer's and hopefully make for a shorter market time. So, learn the aggressive price to sell fast, look at the Net Proceeds and make sure that all mortgages due are accounted for in that statement, and market your home well. Good luck!! - Tue Jun 10 2008, 22:29

OH! The agent should definately be familiar with the area that your home is located. They don't necessarily need to live in the exact city your home is in.

My top agent rant, for fun: please remember that during your interview process that "top agents" are created from the experiences they have and how they learn along the way...hiring a newer agent that has the skills that each agent has mentioned below can be everything that a "top agent" is, just without the # of years; also, does the # of years represent full-time status? I feel that some newer agents can think outside the box, they adopt technology, and often understand the internet better -- not always the case, but that's the consensus I've heard. Good luck! - Fri May 30 2008, 18:27

All of the previous agents have answered your questions well - I agree! I think that a good listing agent is balanced in a few ways:
1. The ability to accurately analyze the market's current and sold competition for initial pricing strategy AND analyze the market for the duration of the listing...the market is quite dynamic & competition changes during a listing;
2. The ability to differentiate your home in the marketplace;
3. Communication is very, very important and is overlooked by clients - we'd like to think that communication is an easy thing and everyone does it, but they don't always, so keeping you regularly up-to-date on feedback, marketing results, market conditions, etc. is key;
4. Negotiation. Your listing agent should be able to keep your situation confidential and help structure mutual acceptance where it's good for both parties, but where you are protected in case the offer falls apart -- understanding the ever-changing contracts is very important.
5. Honesty, ethics, integrity, whatever you want to call it, is important. We are hired to tell you the honest truth and hired to tell you what you don't want to hear! Sometimes the truth is unfortunate, but it is our full-time job to help you reach your goals.
6. Selling your house is one of the biggest investments you have -- have a great Realtor on your side that you feel comfortable with and you know has your best interests in mind. Your Realtor should be able to show you his/her advanced, on-going real estate education.
7. Your agent should be willing to do the small things...it shows they really care. I'll mow your lawn if I have to! :) Do what it takes to get it done! - Fri May 30 2008, 18:15

Machelle,
There is no blanket answer for your question. Property taxes vary depending on a lot of factors. I can refer you to an agent in that area so that you can narrow down what exactly you're looking for in a property and he/she can give you exact property tax amount for each property. You can also search online and choose an agent.

Good luck! - Wed Apr 23 2008, 10:55

I can refer you to an agent that I know that works in that area. E-mail me if you're interested (Juliehall@windermere.com) and he can answer all of your questions. As far as "hot spots" I would recommend going and visiting the areas that you're interested in and get an idea for which area fits what you're looking for best. Good luck! - Tue Apr 22 2008, 07:51