lisaandallisonre.com | Lisa and Allison

January 23rd, 2009

I won my fight against King County Tax Assessors

Saturday I opened my mail to find a letter from the King County Tax Assessors office. In fear, I tore into the envelope readying myself for a hearing date regarding my 2009 property valuation. To my surprise however, I found myself reading a letter attached to my new valuation (should I agree to it!) The new valuation was same amount that I had suggested on my petition. After doing a short victory dance in my kitchen, I quickly signed the form and sent it off in the mail. What I thought would take months - took about 6 weeks! Yahoo! Now my taxes will stay the same - for a least one more year. I guess hard work does pay off.

Good luck to rest of you who are in the same fight! I hope that your results are the same!

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December 9th, 2008

King County taxes - and the answer is . . .

Within 2 days of sending in my petition to fight my property tax assessment, I received the “Petition Receipt Letter” from the county. My petition has been processed and forwarded to the Assessor’s Office for review. Their response should be expected “over the next several months.”

I was so excited and happy that I got a response that I let myself get ahead of the game! Once I finished reading the WHOLE letter did I see the problem. If the Assessor’s Office doesn’t agree that my tax value is too high, or I do not agree with the new value - then a hearing date is set based upon a first come, first serve basis. Since the Board receives between 5,500 and 8,000 petitions each year it is possible that the hearing would not take place by the time my 2009 taxes are due to be paid! Furthermore, the hearing may not be set before King County assesses my home again!! Then the whole process would start again!! The County would refund any difference if the value were to change once a hearing did take place!

Now I just wait! I am hoping that I will hear back and that the number will be reasonable - I certainly do not want to have to do this all over again before the first hearing even occurs. I will continue to keep you posted on my progress!!

December 2nd, 2008

Bring it on King County!! My fight to reduce my property taxes

It’s official! I have sent it my petition to King County against my 2009 property tax assessment valuation. After completing the paperwork, copying it (since you have to file in duplicate), and sending it certified mail, I now await their response.

I will continue to do my research to back my claim that my property did not increase in value at a rate of 10% over the last year! The research is time consuming and not as easy as I had hoped. I am not sure how someone without access to the Multiple Listing Service information would get the numbers they need to plead their case. I am curious to see what the response is and how long it will be before I actually get a “trial” date.

My next step to go around and get photo documentation to prove that my property does not have the lake views that other homes around mine do possess. It just seems wrong that lake front property would be worth the same, or less, than mine! They sit on the lake!!! I understand that those properties have less land by square footage, but that land should be valued at a premium since there is only so much it to go around! I am just looking forward to seeing what the rationale is from the tax assessors office.

I will continue to keep you posted on the progress as it occurs. If you are doing the same thing - please let us know how things are going for you in your fight!! Good luck to you all!

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November 17th, 2008

Seattle Real Estate Auctions

This past weekend I had my first experience with a real estate auction. A few weeks ago as I was driving home I noticed that a huge sign had been posted in the yard of one of the houses in my neighborhood. The house was going to be auctioned. They had listed the dates of the public open house so I went to check it out. The house itself was a bit scary; green shag carpet, it smelled like old people, the kitchen was tiny and very outdated, some windows needed replacing but all in all the “bones” of the house were good and the lot was great.

My father (who is always looking for a good investment) seemed interested when I told him about it so I decided to do a little more research. I called the auction house to find out more about the terms of sale. Here is a snapshot of what I learned:

1. They add a 10% buyers premium to the winning bid. This means that if the high bid is 100K, the actual sales price is 110K. They didn’t come out and say it but I am pretty sure this is to cover their commission.

2. Because this particular sale was a Guardianship sale the transfer of the deed was to take place with a Bargain and Sale Deed vs a Warranty Deed. This is very standard in this type of transaction (as with estate sales).

3. They do offer a commission to real estate brokers as long as they register their clients at least 24 hours in advance. This is good news for buyers who are working with an agent. They don’t have to feel guilty about circumventing that relationship and it opens up a whole new source of properties for the broker to show the client.

I went ahead and registered my Dad and then showed up on auction day. The auction was scheduled for 10am with an open house starting at 9am. This gave us a chance to walk around the property one more time and really contemplate if it would be a good investment (in other words, how much money would need to be put into it). There were a ton of people who showed up but when the bidding started only a few people participated.

It was a very causal environment. They simply ushered everyone into the front yard, the auctioneer read off the terms of the sale and then opened the bidding at $400K. No takers. The bid went down to $300K. No takers. Down to $200K. Just when I thought it would drop down to at least $150K someone bid (I think they may have been a plant but I can’t be sure). From there the bidding went up to $280K with only two couples participating. The whole thing was over rather quickly. I really expected a lot more action (at least more bidders). I was surprised the whole thing was as low key as it was.

After seeing the process, I am definitely interested in attending more. I will be doing some research as to where to find these opportunities. I really think that with the housing market the way it is, we are very likely to see more of these auctions in the future. I will keep you posted on what I find out!

November 12th, 2008

Polly’s Thanksgiving Carry Over

Here is a recipe to use with all of that left over turkey and stuffing:

Leftover stuffing from Thanksgiving (or you can use packaged)

1/2 cup melted butter

1 cup water

4-5 cups cubed turkey meat

1/2 chopped celery

1/4 cup chopped onion

1/4 cup chopped chives

3/4 tsp each salt and pepper

1/2 cup mayo

2 medium eggs

1 1/2 cups whole milk

1 can cream of mushroom soup

Parmesan cheese

Mix leftover dressing with butter and water. Pat half of it into a greased 9 x 13 inch pan. Mix turkey, celery, onions, chives, mayo, salt and pepper together and pour over the first layer. Sprinkle the rest of the dressing mixture over the top of the turkey mixture. Beat eggs and milk. Pour all over the top. Cover with foil and refrigerate overnight. 1 hour before serving, preheat oven to 350 degrees. Take it out of the fridge and pour mushroom soup all over it. Bake for 50 minutes. Sprinkle with freshly grated parmesan cheese and bake for 10 minutes more.

November 5th, 2008

Foreclosure vs Short Sale: What’s the Difference?

If you are a buyer in today’s market it is important to understand the difference between a foreclosure property and a short sale property. While the news has talked a lot about foreclosed properties, you don’t hear as much about short sales even though many of the homes in today’s market fall into this category. So what does this mean to you?

Foreclosure means that the bank has seized possession of the property and is eventually going to auction off the property. A short sale is a property on which the owner is upside down (meaning their mortgage is now more than the property is worth) and the sellers have to get bank approval to sell the home. While a foreclosure is always considered a distressed property (meaning the owner is several months behind on their mortgage and still living in the home), a short sale may not be. As a result of the market over the last few years, many property owners maxed out their equity and now find that they can’t make their payments. Some people are more proactive and attempt to sell their home before they get behind on the mortgage. If they owe more than they can sell it for, then it is considered a short sale but not a distressed property.

Both of these offer unique challenges and opportunities to buyers. If a property that you are interested in falls into one of these categories, be sure to read our blog article titled “Think Buying a Foreclosure or Short Sale is a Good Deal”.

November 5th, 2008

Think Buying a Foreclosure or Short Sale is a Good Deal?

Many people view a foreclosure or a short sale as a great potential investment opportunity. This may be true, but make sure you know what you are getting into before you make that offer.

People often don’t realize that the mortgage holder calls all of the shots in these transactions. You are not negotiating with the owner, but rather with the lender and they often have their own time frames. As a result, what would normally be a 30 -45 day transaction can turn into a 9 month waiting game with no definite outcome.

So why does it take so long? What we have seen as real estate professionals is that the banks are understaffed and in some cases overwhelmed by the sheer number of properties that they have to deal with. Sometimes it is even difficult for the owner or listing agent to locate the right person within the institution to contact. All this combined with the fact that lending standards have tightened up, the banks are really scrutinizing with whom they would be willing to enter a transaction.

One other factor to consider is the bank will most likely not be very willing to negotiate on the price. They feel that they are already taking a loss and will be doing everything to minimize that. This includes no negotiating on closing costs and often they will not be willing to pay any realtor commission.

From a cost perspective buying one of these homes may in fact be a great deal, but the reality is that in this market there are other homes that still present great opportunities without all the headaches. Be sure to know before you go and realize that the buyer’s agent has very little, if any control over these transactions. Your time is worth money and should be factored in when considering buying one of these homes.

November 3rd, 2008

Downsizing Your Home: Things to Consider

If you are one of the many empty nesters in the Seattle area that are looking to downsize, take heed. Most couples make the move without truly thinking through the ramifications of losing square footage. Sure, it is easy to bask in the delight of fewer rooms to clean, a lower or no mortgage payment, and less maintenance (especially if you move into a condo). But are you truly prepared to part with most of your furniture? Will all of your clothes fit into your new closet? Will two parking spaces and a storage unit be an adequate substitution for your three car garage?

As you start your search for your new nest, keep in mind the way you like to live. Downsizing typically means just that, sizing down. By definition you will have less space everywhere. That means fewer cabinets in the kitchen, smaller closets, tighter bathrooms, and little to no “storage.” If you are truly dedicated to cleaning out 30 years of stuff, then go for it. For those of you that have a harder time letting go then here are a few tips to keep in mind.

Really think about the minimum amount of space that you will need. Moving from 3500sqft to 1500sqft may not be realistic. We worked with a couple who initially started out thinking they could handle that much space. Then it hit them that they had 3000 bottles of wine that they needed to store and 4 cars that they needed to park. Most condos don’t come with more than 2 assigned parking spaces and the idea of turning the second bedroom into the wine cellar just wasn’t going to work. We started to look at units with more square footage and were able to come up with some options that included more parking. Ultimately they went with a 2700sqft condo that allowed them 4 assigned parking spaces. Going from 3500 to 2700sqft may not sound like much of a downsize but it accomplished their primary goals which were to get into the city, eliminate yard work, and enjoy lower maintenance.

But what about that wine? While many new condo projects in downtown are offering services such as access to a wine cellar, there is typically a limit to the amount they will allow you to store. They also charge a premium for this perk. Enter a new trend; offsite wine storage. When our couple couldn’t find a place to house all of their bottles, they did what any true Seattleite would do and started their own business. “Elliott Avenue Wine Storage” located at 1481 Elliott Ave W. (206-217-0383) offers you access to individual wine storage lockers in a temperature controlled environment.

Even if you don’t have 3000 bottles of wine to store, chances are you will be in need of a storage unit even if it is just for a few months. Sorting through years and years of accumulated “stuff” can be overwhelming. Did you know that you can hire people to do it for you? Just like with an estate, you can have people come into your home whose job is to help you get rid of your stuff. They will even coordinate liquidating your excess items and moving that stuff you just can’t part with into storage. If you are a lifetime pack rat then hiring someone to do this will be well worth the money!

In short, really think it through before you make the move. Figure out what you can live without and then commit to getting rid of it. Be honest with yourself and with your realtor about how much space you will truly need. If you do this the process of downsizing will go much more smoothly.

October 29th, 2008

Seattle Housing Market Ranked #1 For Investing