Gretchen Schmidt

I went to the broker's open that I mentioned in my answer below. They weren't really lofts, but zero lot line town homes. Very cool and ultra-modern, but not a true loft. I'm waiting for a forward thinking developer to buy up some of the cool old buildings in Georgetown and renovate them into true lofts, but so far there isn't really anything. - Mon Jun 2 2008, 16:12

I just got an invitation to a broker's open event for new lofts in Georgetown. I didn't see a web site on the email, but it will be next Thursday. If you can wait next week, I can let you know what I find out. Looks like the prices start in the $300s.

There were some cool lofts built with zero lot lines, but they are all sold. Definitely Georgetown will be the next "IT" place. It's Belltown 10 years ago. - Fri May 23 2008, 23:40

Depends on the client. For the most part, Edmonds isn't a bargain. You pay a premium for the quaintness of Edmonds. Most of my clients who are looking in far-north Seattle will cross into Snohomish if the price is right, but Edmonds is farther west than cheaper homes in south Snohomish. - Fri May 23 2008, 23:53

As always, it depends. It depends on the lender providing the loan, the strength of the rest of the offer and on the competition. In all honesty, I don't think there are any zero down loans left. Mortgage insurance (PMI) providers have changed their standards to require at least 3% down. Be sure you are working with a reputable, local lender. When I represent a seller who receives a low-down offer, I immediately call the lender to see how far along in the process the buyer is. Be sure you've submitted copies of all documents requested already (paystubs, tax returns, statements). Be sure the lender has already run your credit report. You can make your offer stronger by being willing to release your earnest money to the seller early. This transfers some of the risk to you instead of the seller solely bearing the risk of your loan not closing. The Nehemiah Program offers a great way for sellers to work with buyers who have little to put down. Check out http://www.GetDownPayment.com - Fri May 23 2008, 23:33

It is great that you get to live with friends for a while to get a feel for the area. Since you have some time to get acquainted with the NW before you really need to start thinking about a purchase, I'd recommend exploring a different neighborhood each week or weekend. Try http://www.nwsource.com/neighborhoods/seattle for some ideas. Once you decide the areas in which you'd most like to buy, interview at least 3 agent who specialize in those areas. Real estate is VERY local. An eastside agent won't know Seattle, and a Seattle agent won't know Monroe. You don't want to work with someone not familiar with the nuances of a neighborhood. Of course, referals from people you know are the best place to start. But what if you don't know anyone who has used an agent lately? You can go to open houses in your prefered area and chat with the agents. When you find someone you feel comfortable with, do all the things discussed already. Check out their web site, blog, Trulia profile, company website profile, etc. If they still look ok, meet them for a coffee. Of course, all agents are vultures and will jump on the opportunity to meet a genuine buyer. If you don't know what to ask when you meet, here are some good questions from Elizabeth Weintraub on About.com http://homebuying.about.com/od/realestateagents/tp/Agentinte… . If you still feel comfortable with the agent and they appear competent, ask for permission to email/call past buyers. Ask how their experience with Joe/Jane Agent went. Ask what they liked most about their buying experience and what they wish went differently. Be very choosy! You will be spending a lot of time with this person and relying on them to advocate, protect and guide you with the purchase of your biggest asset. There are a lot of great agents out there (and some duds) - pick one who fits with your personality. - Fri May 23 2008, 23:10

As with most things, it depends. Being a former accountant, I always recommend crunching the numbers in a spreadsheet. First of all, figure out the variables - 1) what could your house sell for, 2) how long can you expect it to take to sell, 3) what it could rent for, 4) what are your TRUE monthly costs of carrying it while you rent it, 5) how long do you intend to rent it before you sell it. You have already heard that a local Realtor can help you figure out the answers to 1) and 2). Craigslist.com is a great place to determine rent. Pretend you want to rent a house like yours. Go to Craigslist.com and input the criteria for your type of house in Seward Park. See what your competition is charging.

To figure out your TRUE monthly carrying costs, take into account not only your 1) mortgage principal and 2) interest, but 3) insurance (now for an investment property, not owner occupied - check with your ins. agent for the new rate), 4) property taxes, 5) utilities (who will pay them - you or the renter?) and 6) all maintenance. Don't forget that you lose the tax deductibility of your interest.

Then it's time to run the numbers. Figure out what your net gain or loss would be for each month. Take the monthly rental income and deduct the TOTAL monthly costs of carrying the property. If the amount is positive, you still need to decide if you WANT to be a Landlord. The previous posts give good information on being a landlord. If the result is a monthly loss, multiply the monthly loss by the number of months you intend to rent it out. Quantify which loss would be greater - selling or renting.

Good luck! - Fri May 23 2008, 22:38