All Forum Posts by: Ken M.

Quote from @Sean Smith:

Quote from @Ken M.:

Is there a transfer fee when you sell property in Washington. How much on a $500,000 sale?

@Ken M. Washington State does have a real estate excise tax (REET) at 1.1% on a property sold for $500k. King, Snohomish, and Pierce Counties all have an additional local 0.5% transfer tax. Total is 1.6% on a $500k sale, or $8k.

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When I was buying and selling in Seattle Excise was 1.78% which was about $8,900 and 6% realtor fees $30,000 and concessions and costs and fees, it was pretty near $50,000 just to sell.  Nowadays, isn't there a capital gains on top of that of like 7%? 

Ah, don't worry about that, you have Mt Rainier to look at and lots of interesting people living on the streets.  ;-)

Quote from @Sean Smith:

@Hailey Peterson I'll jump in on this topic as a pro-Washington counterpoint. I'm a big proponent of Snohomish county for investing -- it can provide cashflow, a lower entry point than King county, significant appreciation, and favorable zoning laws (multiple ADUs, lot splitting, etc.). Buy a solid front property, build up some equity and use it for more units on the same lot down the road. If you go this way, I'm happy to make an intro to a few great PMs as well.

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Is there a transfer fee when you sell property in Washington. How much on a $500,000 sale?

Quote from @Malakye Smith:

Any important information (and I mean any info) I should know before starting to invest in real estate???🤔

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Join a REIA (NationalREIA.org - ours charges $20 a month, I'm not talking paying a guru here) and get to know some people, attend some classes, attend seminars, take some investors to lunch and ask questions

Quote from @Patrick Roberts:

Use a mortgage/deed of trust, not a contract for deed. Regardless of the financing instrument, you're not getting refunds or money back. That being said, my opinion is that you have better protection of your interests in the property by not using a contract for deed.

While what you said is true, I got the impression the seller won't record the warrant deed until after all payments have been made. A Deed of Trust implies that the WD is going to be recorded with the DOT.

Quote from @Robert Drummond:

I wonder by how much are the Phoenix homes going to decline. 

Wall Street Journal said they think prices are about 35% above what is sustainable. But when you look at the TSMC computer chip factories and other high tech companies moving into the area, it's anybody’s guess. 

Quote from @Chris Seveney:

Quote from @Ken M.:

From CoreLogic

CoreLogic, a reputable real estate analytics firm, isn't just pulling these predictions out of thin air. Their Market Risk Indicator report takes into account a bunch of different factors

A Closer Look at the 5 Cities:

Let's take a closer look at each of the five cities identified by CoreLogic: None are CA, TX, OH or TN

1. Provo-Orem, UT: This area saw significant price increases during the pandemic, but things are starting to shift. According to Realtor.com, the median list price in Provo last month was $566,375, down 1.4% from a year ago. Even so, it's still up a whopping 38% from January 2020. This suggests that the market may be correcting after a period of unsustainable growth. High growth leads to high declines!
2. Tucson, AZ: Tucson is another market that experienced rapid price appreciation. List prices in January were down almost 2% from the previous year.
3. Albuquerque, NM: This city has seen similar trends to Provo and Tucson. While still relatively affordable compared to other Sun Belt markets, Albuquerque's housing market is showing signs of slowing down. I have also noticed that in the desert regions like Albuquerque, the lack of rains can make it extremely difficult to do construction in time and within budget leading to inventory problems.
4. Phoenix-Mesa-Scottsdale, AZ: Phoenix was one of the hottest housing markets in the country during the pandemic. However, it's now facing a significant correction. Increased inventory and cooling demand are putting downward pressure on prices.
5. West Palm Beach-Boca Raton-Delray Beach, FL: South Florida saw a huge influx of people during the pandemic, driving up prices. But the area is also vulnerable to rising insurance costs and other factors that could dampen demand. List prices were down a notable 10% from a year earlier in Palm Beach County, indicating a significant shift in the market.

The Future Outlook

While the CoreLogic report highlights the risk of price declines in certain cities, the overall outlook for the national housing market is still relatively positive. Most experts believe that home prices will continue to grow, albeit at a slower pace than in recent years.

 We will see this in other markets as well, especially other areas of Texas and Florida where insurance and taxes have skyrocketed. I also believe California is going to start seeing some softening which I will get a lot of hate for, but pricing in certain areas is just not sustainable. 

Lol You'll hear from San Diego for sure. ;-)

From CoreLogic

CoreLogic, a reputable real estate analytics firm, isn't just pulling these predictions out of thin air. Their Market Risk Indicator report takes into account a bunch of different factors

A Closer Look at the 5 Cities:

Let's take a closer look at each of the five cities identified by CoreLogic: None are CA, TX, OH or TN

1. Provo-Orem, UT: This area saw significant price increases during the pandemic, but things are starting to shift. According to Realtor.com, the median list price in Provo last month was $566,375, down 1.4% from a year ago. Even so, it's still up a whopping 38% from January 2020. This suggests that the market may be correcting after a period of unsustainable growth. High growth leads to high declines!
2. Tucson, AZ: Tucson is another market that experienced rapid price appreciation. List prices in January were down almost 2% from the previous year.
3. Albuquerque, NM: This city has seen similar trends to Provo and Tucson. While still relatively affordable compared to other Sun Belt markets, Albuquerque's housing market is showing signs of slowing down. I have also noticed that in the desert regions like Albuquerque, the lack of rains can make it extremely difficult to do construction in time and within budget leading to inventory problems.
4. Phoenix-Mesa-Scottsdale, AZ: Phoenix was one of the hottest housing markets in the country during the pandemic. However, it's now facing a significant correction. Increased inventory and cooling demand are putting downward pressure on prices.
5. West Palm Beach-Boca Raton-Delray Beach, FL: South Florida saw a huge influx of people during the pandemic, driving up prices. But the area is also vulnerable to rising insurance costs and other factors that could dampen demand. List prices were down a notable 10% from a year earlier in Palm Beach County, indicating a significant shift in the market.

The Future Outlook

While the CoreLogic report highlights the risk of price declines in certain cities, the overall outlook for the national housing market is still relatively positive. Most experts believe that home prices will continue to grow, albeit at a slower pace than in recent years.

Quote from @Tammy Christensen:

The property is free an clear a title search has been done. The BUYER n Seller have agreed on price, down payment,  n monthly payments etc. The seller is making sure the purchase agreement states that any an all money paid is non refundable.  I feel the seller knows that the property is going to have a lower appraisal value which gives rights to buyer to back out. 

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Your comment: "I feel the seller knows that the property is going to have a lower appraisal value which gives rights to buyer to back out."

If the buyer can back out, what is the problem? I'm unclear.

Quote from @Tammy Christensen:

Purchasing Property for $85,000. Down payment of $25,000, then $5,000 per month for 12 months. The Seller is giving keys to BUYER of  property, however the DEED/TITLE doesn't get transferred to BUYER til after the final payment. The SELLER says no matter what there is no refunds on any of the money under any circumstances.  What can the BUYER do to protect their money, from any unforeseen circumstances??

Sounds like a Contract for Deed setup. There are not enough details to know specifics but get a real estate attorney to draw up a contract for the state the property is in, ask if you need a title report, ask if they will escrow the deed, and ask the attorney all of your questions. Follow his/her advice.

So far, you haven't proven they have the right to sell the property, that it is free and clear with no liens or that there aren't other interested parties involved.

Quote from @Carlos Garza:

@Ken M. Thanks for replying to post.  Would like to know what part do you think is off? Just for an update, I received a notice of proposed abandonment from the trustee.

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 This can not be handled without seeing the paperwork and knowing what was filed, who is involved and what motions have been filed and how the judge responded. 

You need a bankruptcy attorney the moment you are notified of the debtor filing for bankruptcy.