Rob Graham

Hey gang, here it is. My first attempt at video blogging. Let me know what you think.

Also I created a utube channel with lots of other videos either that I made or that are of interest to Seattle and Seattle Real Estate. Check it out and let me know what you think.

http://www.youtube.com/user/RainCityRealEstate

With all the doom and gloom in the media and in public perception regarding home prices, I thought I might add a little perspective. Yes prices in Seattle are down, (THIS YEAR). Yes, it is a buyer's market. But if you take a step back and not look so myopically, you see that home prices in Seattle over the past five years are actually up dramatically.

For example, since October 2003:

North East Seattle Median Single Family Home Price is up 38%

North East Seattle Median Condo Price is up 28%

North West Seattle Median Single Family Home Price is up 33%

North West Seattle Median Condo Price is up 27%

Yes, if you bought last year and need to sell now, you are in trouble, but considering the average time horizon of home ownership, most of us are just fine.

Unfortunately human tendency is to look only at the immediate.

The Sky is not falling!

Remember 2003, we were all dressed in animal skins, fire had just been harnessed, and we all looked forward to the day someone would invent a better club so we could scare off the Tyrannosaurus outside our cave. NO, it wasn't that long ago. Take a deep breath. With all due respect to the 1 in 1,600 of the Seattle population that is facing foreclosure, everyone relax. We will get through this. It is temporary.

In honor of my latest listing in W. Seattle, I thought I would share this great video tour of W. Seattle. 

PS  if you want to see more videos of Seattle Neighborhoods or just Video of Seattle in general, I am trying  to organize the best ones that I find.  Check them out here:

http://www.youtube.com/user/RainCityRealEstate

FHA financing used to be only for a select few. With the recent changes to the mortgage world, FHA has become much more popular and is in fact one of the most attractive financing options currently available when buying a home.

WHY?

Under FHA approved loans, you can put as little as 3% down toward a home. Significantly less than the 5-10% typically needed for a conventional loan. In addition, the amount that you can negotiate a seller to put toward your closing costs is significantly higher.

In cities like Seattle, FHA loans have the greatest appeal to those who are looking for their first home or make less than a million dollars per year (ie. most of us). Condos are attractive options for this group.

But FHA loans only work on a project if they are FHA approved right? Not necessarily.

If a particular condo complex is FHA approved then there is no problem. Using your FHA loan to make an offer. If it is not, then you will need to have your agent get a hold of the FHA Spot Approval. It is basically a checklist that your mortgage agent needs to have filled out by the condo association rep. to make sure that the projects financial situation is secure. If the complex has no major red flags, such as a law suit against it, or a significant pending special assessment, then everything should be fine.

So go ahead shop your hearts out, and if you find the perfect condo and are concerned about FHA, breathe a sigh of relief. It isn't as difficult as it sounds.

When doing an inspection:

Always get a sewer scope!

A sewer scope is an additional inspection that costs about $200 but is one of those things you don't want to buy a house without knowing. During a sewer scope they put a camera down the sewer line to see if there is any damage to the line. Often they find tree roots that need to be removed but other times they can find actual damage or whole collapsed lines. The cost to fix them can run in the tens of thousands of dollars and become your problem after the close so you need to know about them before hand.

Let me tell you a little story:

Several years ago a friend of mine was selling her house. The potential buyer did a sewer scope and found a complete collapse. The estimate to fix it was in the neighborhood of $40,000. That's a 4 with 5 zeros! Something you would certainly want to know.

Side note:

The scope isn't necessary for condos since the association is responsible for the maintenance of the sewer line for condos and co-ops.

Just like a regular inspection and a title search, you hope they show nothing and they typically do, but when they do find something it makes the $200 you just spend seem like candy.