The onus is on you, the Buyer, to line up and proceed with an investigation of the property to the extent you choose. A broker working on your behalf will have good suggestions for you, such as a list of licensed inspectors, a number of companies that do sewer scoping, and where and how to test for lead paint, asbestos and other hazardous materials. Plan to take two to five hours off from work and attend the inspection. You will learn a lot more about the property from accompanying the inspector than just reading the report later. Expect that an inspection for the average house will cost around $400 and a sewer scope another $200. This is all money well spent.

There is a neighborhood review clause in the inspection. You may take the opportunity to investigate crime statistics with the local law enforcement agency, determine the time required for your commute to work, check noise levels at different times of the day, and anything else that may affect your quiet enjoyment of the property.

I learned from a client years ago that the best neighborhood review process was to take a couple of hours and go knock on neighboring doors. Ask they people there how they like the neighborhood and what kind of problems might be anticipated. She was exactly right and I've been recommending that process ever since.

Your attitude and that of your broker are very important in the approach to the inspection and how you handle the results. There are three options open to you as you near the inspection deadline:

1. Perhaps you just want to walk away and that is within the bounds of your allowed choices.
2. There is also an option to negotiate with the seller, and minding the timelines is of utmost importance. Sellers in the recession market are already feeling put upon and will likely dig their heels in with requests for repairs. Work through this with your Broker respecting that, but still with a goal of getting the property at a fair price.
3. No house in perfect, and in spite of its flaws you may still love the house and elect to purchase it as it is. Some buyers forget that the original goal was to own a home.

Remember that the inspector is not there to pass or fail the house. The inspector is there to give you an idea of the condition of the house and its elements. You, the Buyer, make the decision to proceed or not.

On July 1, 2010 the State of Washington enacted a number of laws concerning the real estate industry and one of them: WAC 308-408C is all about what an inspector is required to do and what an inspector is not required to do. For a PDF summary of the law as put out by The Washington Realtors®, drop me an email and I'll send it to you.

The Seattle Police department has come out with an interesting crime mapping tool that will certainly be interesting to buyers and also to sellers, homeowners and renters. Part of crime prevention is being aware of it and then taking proactive steps to correct problems by cooperating with your local law enforcement agencies.

Here is a link to the what's called My Neighborhood Map. In conjunction with Bing Maps the Seattle Police Department has put together a wide variety of information besides crime and crime statistics on this site. One can find listings for Art and Recreation, Community Services, Education, Parks, Permits, Public Safety, Transportation and Utilities. This is a bookmark link for anyone who wants quick information for in and around Seattle.

It takes a little orientation to figure out everything that is available on the map but I can see many uses for it besides giving a buyer a link to check out crime statistics in the neighborhood where they are considering purchasing a home.

Lloyd Hara, King County Assessor says his office is looking into the following categories:

• properties on which assessed values didn't change from one year to the next amid a volatile housing market
• properties valued below the price for which they sold
• "personal property" such as art collections on which corporations and wealthy individuals may have failed to pay tax.

But I ask, why not look into properties valued above what they sold for at the same time? If you can back charge some property owners, as the article suggests, do you refund others who have sold, or would the refund go to the current property owner?

A former tax assessor, Harley Hoppe, has been assisting Hara with his efforts to resolve the tax deficit that looms for next year. Hoppe "said he is personally aware of "thousands" of undervalued properties. As part of his consulting business, Hoppe monitors assessment records and property sales.

I have another question. Doesn't the county monitor assessment records and property sales? Why haven't they come up with something before now? And what are the figures?

I did a little tax search myself this morning using tax information available through the NWMLS. I took a typical home in the Ravenna Wedgwood area which sold recently. Then I asked for 50 comparable sales within 2 miles of this property that sold and closed any time since January 1, 2009. The tax data gives both the assessed value and the sold price and well as the assessed value ratio and other information. Here is that document.

I averaged the assessed value ratios and came up with 0.943438. To me that means that in a sampling of 50 properties in a typical Seattle neighborhood, the average sales price was only 93.4% of the assessed value. If homes are selling for less than assessed value, then the assessed value is too high.

If someone knows of, and tells the assessor that there are thousands of under-assessed properties in King County, then by all means, find out why that is so, and go to the people that under-assessed those properties and find out why. It doesn't seem to me that the fault lies with the property owners that were under-assessed. What do you think?

As Realtors, we get a lot of questions about the charge and who is supposed to pay for it. The reason  the charge was put only on new homes was because it was the new growth in the county that caused the need for the larger sewer system.  A case of government and good sense going hand in hand.

A home owner could pay the fee at one time, or have it amortized over fifteen years and have the amount added to their normal sewer bill.  Because it was a part of the monthly bill it was often forgotten as a separate charge. Sellers of homes built since 1990 often did not disclose that there was this extra charge attached to the property. A few years ago the NWMLS Forms Committee added a clause to the Purchase and Sale Agreement specifying that:

Charges and Assessments Due After Closing would either be assumed by the buyer , or would be prepaid in full by the seller at closing.

That calls attention to the Sewer Capacity Charge, as it is an assessment that is due after closing and escrow companies will handle the matter according to the choice of the parties to the agreement.

Ask your Realtor to research the sewer capacity charge on a property you might be interested in if it is less than 15 years old. Getting the seller to pay for it may save you a few thousand dollars.  The charge is $49.07 per month if paid over the 15 year term.  There is a discount if you can pay the Sewer Capacity Charge off early.  There is an online method to do so. Just follow the link above.

If you have any other questions any Lake and Company agent will be happy to help you. Just give one of us a call.

The Streamlined version is limited to cosmetic repairs and up to $35,000 worth of work. The standard version of the 203K plan covers foundation and structural work as well.

The major benefit of this type of loan is that the seller has no work order worries, and the buyer will have no after purchase expenses. Any work that needs to be done will be paid for by the proceeds from the buyer's loan, so long as the end product appraised value equals or exceeds the loan amount. The work is all done after closing. The buyer is then in possession.

So, you didn't want to buy a fixer, but the location of one is perfect for you. Go the 203K route. Or maybe you want a fixer. Contact a Lake and Company agent for further information. There are a lot of details but with our help and the help of a professional like Ken Steiner, you will find the process easy and rewarding.

Attorney Annie Fitzsimmons answers questions for Washington State Realtors in a weekly newsletter.

As a rule, in most contracts, any offer can be withdrawn until it is accepted by the other party. In a Purchase and Sale offer where the parties have choosen to use Form 35 Inspection, and Form 35R Inspection Response, can either party withdraw their offer during the 3 day (unless changed) period while waiting for the other party's response? Wording in Form 35 states that "[a]ll requests, responses and replies made in accordance with the following procedures are irrevocable for the time period provided."

So, the answer is no. A seeming exception to the general rule.

If the buyer waives the inspection or terminates the sale based on the inspection, no response is required.

The above is not legal advice. All cases have specific issues that should be reviewed by an attorney.

Brokers are hopeful that the upward trend will continue and spread to other areas as Spring arrives. Last month was the warmest January on record. The Tim was quoted in the article. He said, "Now that profit is no longer a given in people's minds when buying a home, buyers are realigning their priorities. They are less likely to 'drive till you qualify' when they realize that they probably won't be able to sell that far-flung home in a few years for tens or hundreds of thousands more than they paid and then move to the neighborhood they really wanted to live in, in the first place." Some people's glasses are always more than half empty.

The important thing to keep in mind is that the best time for you to buy or sell a home is when the events in your life start to tell you that you should. Trying to time what you do to some regional or national statistic does not necessarily make for a happy transaction. And you can't get better advice on this than calling a Lake and Company agent.

Rick Hubbert
Senior Mortgage Consultant
On Q Financial
WA Lic. 510-LO-37044
425-643-7000 PhoneUS Senators Near Deal On Extending Home Buyer Tax Credit

By Jessica Holzer, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- U.S.Senators are nearing a deal on a measure to extend the first-time home buyer tax credit through next April and expand it to some buyers who already own a home.

Under the deal, certain "step up" buyers who have lived in their current home for at least five years would also qualify for the tax credit, according to lobbyists close to the negotiations.

The deal comes amid heavy housing industry pressure to extend the tax credit, which is set to expire Dec. 1 unless Congress acts. The measure, which proponents hope to offer as an amendment to legislation extending jobless benefits, could receive a Senate vote this week.

Under the measure, the credit would run through April 30 of next year, though sales contracts in force by that date would be eligible as long as the deal closes within 60 days. The credit would amount to 10% of the sales price, with a maximum of $7,290. The current credit has a cap of $8,000.

To qualify, first-time home buyers must make no more than $75,000 a year or $ 150,000 for couples. For step up borrowers, the income caps are $125,000 for individuals and $250,000 for couples.

_______________________________________________________________

So, it looks to me like it might be a good time to start thinking about a move up if you've been in your home for 5 or more years, or selling that home in the $400,000-$700,000 range to a move up buyer.