Ok, so here’s a few things that I have observed over the years, they are both tried and true “rules of thumb” as well as my own words of wisdom.
1. Don’t fall in love with any one property.
Real Estate deals are all around. If you do your research, and find an undervalued or nicely priced property, it’s not the only deal around. If one house, condo, or other property gets away from you, go find another. Falling in love with a property usually leads to emotional decision making, emotional decision making is never a recommended strategy for striking a good deal on a purchase.
2. Don’t expect to buy your “dream home” as your “first home”.
The average person sells their first house in 5-7 years. Buy low sell high should be your motto, not “let’s go find our dream house”. As a first time buyer you probably will not be able to afford anything close to your dream house… especially around Seattle. Figure out your “must-have” features, figure out your price range, and then shop like crazy for the best deal. But the “best deal” is very unlikely to be your dream house.
3. Start interviewing professionals now who may help you later during or after your purchase.
Home Inspectors, Mortgage and Loan Officers, Architects, Real Estate Agents, there are literally dozens of people involved in most home purchases, a good relationship with this people is essential to making the purchase run smooth.
4. Location, Location, Location
What just went up in price might not be the next market that will pop. Location is not just about where you want to be, it’s also about where the market is going to go next. There’s not much to say other than to think long and hard about where you want to be, and where the market is going. No one can say for sure, but a good educated guess is better than shooting in the dark. I personally favor Everett for rentals and investment properties, because the rents are strong, the prices are lower than seattle, and the outlook for appreciated is good. And that’s just one example.
5. Condos, the good and the bad.
Condos can make huge gains in Seattle, and have outpaced on occasion stick built homes. However, the downside is the possibility of special assessments. Don’t know what a special assessment is? It’s the condo’s way of charging you to replace things like the siding or the roof. I’ve seen tragic problems with condos. But I’ve also seen people make 100k in a year in appreciation. Homework, homework, homework.
Summation:
So, I’ll keep updating this as possible. The fact is that many of my clients need the same advice time and time again… so I hope it helps strangers and friends alike in buying and selling property.
