In the event of a foreclosure, it is not possible to get inside the house, thus potential buyers are forced to use clues from the outside of the house. 

a realized gain/loss occurs when you sell.Does this make sense?

That being said, I don't see the Costco's, Amazons, Microsofts of Seattle leaving there anytime soon, and so I do think there will always been high demand for property in Seattle, but the double digit annualized appreciation that has been occurring over the last decade, I don't see continuing.  

What makes this spot special is 4 lane highway 1/4 mile away, hard surface road, perfect walk out building site, 100 year old oak trees, pond, stream, back yard abuts our creek and pasture where no one will ever build, 13 year old oak and evergreen trees around the property, boulder landscaping, 1 mile from the town and events, 5G internet coming this fall.Counter offer:1.

I had a blank "hard Money" mortgage form in my computer from a few years ago that favored the mortgage holder in event of foreclosure but can't seem to find it...

While there are of course some benefits to a condo, the associations are able to raise your HOA fees any time they have a "need", may have to levy large "special assessments" in the event of large expenditures, and can even make sure that only a certain % of units in the community are not occupied by actual owners thereby making rentals difficult.

But any disruption to the market (regulations, weather events, more competition, etc) could impact you severely.

In any event, I'm not concerned about it as I'm collecting a little extra to compensate for the inconvenience of her possibly leaving in the middle of winter or something. 

We have read that we will need some type of collateral that ties to the property, like a Deed of Trust, in the event that things go south.

The report contains a list of “historic impacts” associated with each drought tier, noting things that have occurred in previous years.