Brad Davis

For those who may not yet be able to afford a single family home, you may be thinking about condos as a way to get into the housing market. It's a great way to start and, over time, build equity. However, I'd like to point out some serious considerations when buying new construction condos in Seattle.

New construction seems appealing for several reasons. Primairly, many like the thought that this will be there home, that no one else has occupied or lived in the space. Depending on how far along the project has been built, a prospective owner may even be able to select finishes for the unit. Even so, there is also a down side to new construction condos.

Believe it or not, some developers and builders cut corners to pad their margins. That's not all developers, but definitely enough to pose concern. Why? Well, let's take a client of mine for example. He purchased a great new construction condo unit in Seattle's Central District back in 2004. Unfortunately, the building had to be re-sided because it wasn't done correctly the first time around.

While my client's home owner's association (HOA) won a law suit against the builder, the proceeds from the suit weren't enough to cover all the costs for reconstructing the building's siding. This is a fairly good size building, housing 25 units. The HOA then passed an assessment. In this case, since the building is fairly new, the association deemed it pertinent to maintain the reserve they've been accumulating only since 2004. So the unit owners had a charge of at least $10 thousand each.

Even worse, condominiums cannot be bought or sold using financing when an HOA is engaged in a lawsuit or the building is under construction. As well, assessment is a dirty word. Even if one has already been passed and paid off, buyers who have not yet owned a condo may be fearful of a subsequent upcoming assessment.

Anytime one is considering or even contracting to purchase a condo, it's always recommended to make discovery and documentation relating to the HOA a condition or contingency of the agreement. In other words, a skilled agent will ensure a buyer is amply provided a timeframe to review the HOA resale certificate, which is a large file of information. It generally includes HOA financials, meeting minutes, covenenants, restrictions, etc.

Just to be clear, I'm not writing this piece to disuade anyone from buying new construction. Rather, I want to point out that while most may think new construction is a better way to go, it really depends on who built it and the quality that went into the materials and craftsmanship. Again, these are important considerations for buying new construction condos in Seattle.

Your success is my business,

Brad Davis

www.JustRealSeattle.com

Ever wonder how you might go about finding FHA approved condos in Seattle? First, you can contact your local real estate professional. Often, your real estate professional can check the MLS to see whether a condominium project is FHA approved or they can check elsewhere. You can also gather FHA approved condo information on your own via the FHA section of HUD's website.

Why is it important to find out whether a condominum project is FHA approved?

HUD has changed the guidelines for condo projects and existing condo owners who want to get approved for FHA financing. When a condo project is approved, this simply means Buyers can use FHA loan financing to purchase the property. Previous to the change, if a condo project was not FHA approved, lenders were able to perform what was known as a "spot approval" to make FHA financing available for a non-approved complex. Those days are over.

What does this mean to the Buyers?

Attempting to finance a non-approved condo with FHA could mean:

• A delayed or stopped closing.
• FHA will not loan the money if the property is not FHA approved.
• An inability to purchase the home you really wanted.

What types of condominium developments do FHA approvals affect?

• Proposed/Under Construction
• Existing Construction
• Conversions

For more information about finding FHA approved condos in Seattle, visit www.justrealseattle.com.

Your success is my business!

Beginning in November, a collaborative group of real estate professionals are launching Seattle Home Buying 101, a regular series of Seattle first time home buyer classses. While such classes are far from being a new concept, they will provide a condensed format while covering all major topics new buyers to the market will need to know.

Seattle Home Buying 101 classes will be offered on a weekly basis starting in January 2010 and will follow the basic cirriculum as prescribed by the Washington State Housing Finance Commission, though they are not commission sponsored. This group will also continue to offer commission sponsored House Key classes at least two times per month.

More news and information will be available by December 2009 at www.SeattleHomeBuying101.com. For more information on Seattle first time home buyer classses, visit www.JustRealSeattle.com.

If you're thinking about buying a Seattle bank owned property, there are some great opportunities for finding incredible deals in this market. However, there are also some important considerations.

For HUD owned properties, you'll need to work with a reputable HUD registered agent. Most brokerages aren't registered or eligible to represent your bid for a HUD home.

Always be sure to inspect any home you're considering purchasing whenever possible. It's very common for bank owned properties to be sold as-is, which means you can expect no remedies, repairs or further concessions based on the inspection report.

When inspecting a bank owned home, one of the most important considerations will be to make sure the water and electric utilities are turned on. Even if there is an outstanding balance owing on the property's utilities from a previous owner, a municipality will likely turn utilities back on for a day or so to accomodate an inspection. It behooves municipalities to help the home sell so they can have a paying customer again.

For more information about Seattle bank owned property, visit www.JustRealSeattle.com or call Brad Davis, Coldwell Banker Danforth (206) 240-0467.

Your success is my business!

Today marks the end of an era when the Seattle Center Fun Forest closed for good. As a beloved and former remnant of the 1962 World's Fair, the city opted to close the amusement park rides due to declining sales and an altered vision for the downtown cultural park.

I've enjoyed trips to the Fun Forest since moving to Seattle I was seven years old. Of course I had to relive once more my fond memories of my tiny urban amusement park, so I made one final pilgrimage to the play land yesterday afternoon.

The rides haven't changed too much over the years. The blue wind storm roller coaster is a slightly larger version of the red coaster that stood adjacent to Memorial Field. The log ride is in the same spot between the Monorail Station and EMP. What was different is the previous carnival-like atmosphere had all but completly faded.

I remember crowds of people previously swarmed the Fun Forest, especially on the weekends and on nice, sunny summer days. There were game booths brimming with plush prizes, vendors, performers and of course the "thrill" rides, though they're likely only somewhat thrilling to those 10 and under.

For me, the Fun Forest served as an important symbol. It was a small urban oasis in one of the Pacific Northwest's chief cities, which showed we had a softer side which appealed to the young and young at heart. I recall a time back in the late 1980's when Disney expressed strong interest in transforming Seattle Center into somewhat of an urban theme park attraction. The city really missed wishing upon that lucky star by not solidifying such a partnership. If the Fun Forest was once able to capture the imagination of Disney, just think of what might have been.

Alas, here we are today, living in a city where our historic landmarks cling on for dear life, shivering in the shadows of sprawling, squeaky-clean and high-rising multi-use development projects. Sure, the Fun Forest has always been a bit campy, but it was for so long a vibrant part of the pulse at the core of our city's soul. I always thought the very reason they named Seattle's former World's Fair campus "Seattle Center" because it is the very heart of our city.

It's the end of a great era, the Seattle Center Fun Forest is closed forever ...

Your success is my business!

Brad

www.JustRealSeattle.com