I\’m Hooked On Vancouver/Clark County, Washington!

1. I’m not a first time home buyer—or am I?

   You might be surprised to find out that you are a first time home buyer for purposes of the $8000 tax credit!   First time home buyer is defined as any one who hasn’t owned a home in the last 3 years. [See more about qualifying as a first-time home buyer in my previous post.]

2. I’m interested but just haven’t gotten around to doing anything.

   Better hurry!   The credit applies only to those purchases closed on or before November 30th, 2009.

3. I can easily close by then, can’t I?
   

   Maybe.   It usually takes at least 30 days from the time you find a house until the time it closes.

4. Well, since it’s a buyer’s market, it should be easy to find something, right?
   

   Maybe not as easy as you think!   Despite the “buyer’s market”, we are seeing multiple offers on the best properties in the lowest price ranges.   I expect that to accelerate as we get later in the year and more first time buyers bid the prices up.

5. I don’t ever pay very much in taxes so the credit won’t really help me, will it?
   

   No longer true!   Unlike the preliminary version of the credit, which was “non-refundable,” the version passed by Congress is a “refundable” credit.   In other words, you get back the $8000 even if your total tax for the year is less than that.

6. Don’t I make too much money?   I know these things are only for low income people.
   

   Not at all!   If you are a single person making less than $75,000 or a married couple making less than $150,000, you are entitled to the full credit.   Even if you make more, you may be entitled to a partial credit.

7. How do I know how much the credit will be?
   

   In our Vancouver Washington/Clark County market there’s a really good chance it will be the full $8000.   It’s computed at 10% of the purchase price up to $80,000 and the vast majority of our properties are priced over that amount.

8. I want to buy a duplex and live in one-half of it.   Is there a credit for me?
   

   Yes!   While investors are not entitled to the credit, if you purchase 2-4 units and live in one, you are eligible.

9. Okay, I’m ready to get started.   What do I do first?
   

   Call me, and we’ll sit and talk about what you want, get you preapproved with a lender, and get going!

Before you pass up that $8,000 tax credit because you think you’re not eligible, consider these facts-

• “First-time” home buyer is defined as someone who hasn’t owned a home in the last 3 years.
• Married folks- neither of you can have owned a home in the last 3 years.
• The three-year period is counted from the passing of title of your former home until the passing of title to the home you are currently buying (commonly referred to as the ‘closing’- all papers are signed and the title is recorded in your name).
• Ownership of rental property or vacation property ownership does not disqualify you.

If you’re not sure, have someone who is qualified double-check for you.

For more on this first-time buyer tax credit, see my post “First Time Home Buyer Credit“Free Money from the Stimulus Bill.”

Wow, What a Great Deal!!

Buyers: did you find a house you™d like to buy, but can™t stand ceiling cable heat, baseboard electric, or electric wall heaters?

Sellers: Are you needing to give your home a competitive edge to get it sold?

Has Clark PUD got a deal for both of you!

Clark PUD is one of 63 utility companies in the Pacific Northwest participating in a pilot program to determine how much energy can be saved by installing a new ductless heat pump (air conditioning is included) in homes with electric heat and no natural gas line.

The pilot program provides a rebate of $1500 when the system is installed by an
approved contractor, and special financing is available, too. The only other requirement
is that you have lived in the home for at least a year so that there is a history of your
electric consumption when the utilities track the savings.

So go ahead and make an offer contingent on the seller providing a ductless heat pump to
replace the existing system, and get the house you want and an efficient heating system to boot!

Here’s a link to an article in The Columbian dated January 21, 2009.

Ductless.com is a site with lots of photos of actual installations and more detailed descriptions of how this new type of system works.

More and more states are facing serious budget shortfalls for 2009 (and possibly 2010) due to rising costs and to lower estimates of tax income. A few states are even considering–or are already in–bankruptcy! The two paths are to cut expenses and to increase income.

The State of Washington (“Washington”) where I live has very recently added a more scary twist to the collection of excise taxes on the tranfer of real property. They are proposing to tax what I think of as the ‘phantom income’ involved in short sales. This is based on a concept originated by the IRS-

‘forgiveness of debt as taxable income’

Most commonly, ‘forgiveness of debt’ occurs when you cannot repay an obligation and the lender ‘forgives’ the unpaid portion.

Interestingly, while Washington is saying it will now do this on real estate sales, the IRS has put it on temporary hold due to the economic crisis some many are facing in our country.

So the 3-fold trends I see in this regard are that an increasing number of states will-

1. begin taxing real estate sales by excise taxes and other taxes
2. increase the % amount of existing excise and other taxes
3. look for new & different ways to apply excise and other taxes (as Washington is currently trying to do with its proposed taxing of ‘debt forgiveness’ in short sales.

See my post “Taxing of Short Sale ‘Phantom Income – Confusing, Unfair and a Misinterpretation” for a more complete analysis of Washington’s current proposal.

Why would someone spend $13,000 to get a law degree (Juris Doctor) if they intended to eventually go into real estate?   That can be done in most states for under $500!

In my case the answer is simple: I had no idea I would ever want to move from law into real estate. So I spent three years at Northwestern School of Law (Lewis & Clark College) studying and serving (1 year) as editor of the ‘Law Review,’ graduating ‘cum laude’ in 1983. I accepted a position with the Feds after passing the Oregon Bar exam.

My Significant Other (now my husband) was in real estate at that time. It was interesting–sometimes amusing–to hear his stories of the ups and downs of a real estate agent’s life.   Because I loved looking at houses, in 1987 I got my Oregon real estate license ‘just for fun.’   Because the Feds paid attorneys well, we didn’t need to depend on his or my real estate income (which was fortunate because local real estate was pretty slow at that time).

Around 1990 he decided to leave sales and purchased a small real estate research and publication business in Clark County in Washington (across the river from Portland, Oregon). I was disenchanted with practicing law on the Federal level and tried a couple of years of private law & tax consulting (after taking and passing the Washington State Bar exam).  

In 1991 I took and passed the Washington real estate agent exam. Over the next year I found that my natural interest in houses and land could find an outlet by combining my legal knowledge with the everyday practice of real estate sales. I closed my legal & tax consulting business in 1995 and have never looked back!

Increasingly I’ve found applications of my legal training and expertise in my real estate practice. Here are a few examples:

• Maximizing client options: In any given sales situation, I’m more likely than average to know a range of options my clients should consider.
• Short sale ‘deficiency judgment’: In one short sale, I convinced a bank to accept the sale without a Seller agreement to pay a deficiency judgment for the amount between the short sale price and what the Seller actually owed. I pointed out that any deficiency judgment would be discharged in bankruptcy and so the bank wouldn’t get it anyway.
• Short sale ‘debt relief’: In a later short sale, I was able to let a Seller know he wouldn’t be responsible for any income taxes on the ‘relief of debt’ because Congress had recently changed the law in regard to this).
• Protection for the handicapped: A recent client had serious disabilities. His house purchase was financed by a legal settlement + proposed rental income by a couple of friends renting rooms in the house from him. To ‘protect their investment,’ the friends were asking to be on the title to the house.
   
  • Based on the possibilities for future disputes over ownership, I recommended he discuss some alternatives to this with his attorney, which he did. They then found a less risky way to compensate his friends for their financial support.

  Single agency representation (no divided loyalties): a number of buyer and seller clients have appreciated my policy of single agency (aka ‘no dual agency’). This means I don’t sell my own listings if both the buyer and the seller want an agent to represent them. (My belief is that they should both want their own representation.) That’s also why I earned the Realtor ^® Accredited Buyer Representative (ABR) designation.

  I know there are agents who feel they can represent both parties simultaneously and create a win-win transaction for both parties.   Since this effectively doubles the agent’s income from that transaction,   I’m not sure how objective the viewpoint can be. I’ve never felt I could REALLY do my best for both clients at the same time.

  • If one of my buyers wants to buy one of my listings, I refer the buyer to a qualified salesperson in my company who will represent them. That’s a true win-win for the buyer and seller by each having their own needs and wants fully represented in the negotiations over price, terms, etc.
• Correcting a legal description: In one purchase I was dealing with the Seller and his attorney who had drawn up the legal descriptions for the subdivision when it was first developed. We needed to get the legal description corrected for the property being sold. The attorney said she wished I had been involved during the development phase so they would have gotten it right in the first place!

Conclusions:

So, should everyone in real estate should have a legal degree? Not really. But when you’re looking to refer a buyer or seller, it may be worth considering the advantages of using an agent with legal expertise.  

I get many of my out-of-town   referrals (and a few in-town co-listings) because referring agents know-  

1. I won’t create problems where none exist. Some agents raise alarms over non-issues while missing less obvious but serious legal hazards.  
   • Even with clients whose transactions have no ‘special’ legal implications, I’m more likely than average to avoid creating legal problems.
2. I know when to call in the experts. If consultation with another professional is needed, I won’t hesitate to recommend that my client see an attorney, accountant, tax specialist, etc.  
   • I know good local attorneys specializing in real estate, estate planning and general matters. (When I decided that real estate was my real ‘calling’ I gave up my law licenses.)
   • If appropriate, I’ll attend the appt. with my client to help clarify the issues and interpret any proposed solutions.
3. I’ll get the job done and the transaction closed. With my training and proven expertise, the only failures to close a sale where I represented the buyer were where the buyers changed their minds. (Naturally I had protected them against losing their earnest money!)
   

Call me or email me to discuss how I might be of service to you: (360) 600-1050.
Disclaimer: I am not an attorney in any state at this time. No statements I make here or to my clients is meant to constitute legal advice and should not be substituted for seeking legal, tax or financial advice from a currently licensed practicing professional.

© 2008-2009 Janine Hook Pierson and Chuck Pierson. All rights reserved. All violations will be vigorously prosecuted. For reprint permissions email Reprint Permissions.

There are really 3 questions here-

1. Should I be considering new construction at all?
2. If so, do I want to have something custom-built or do I want to buy a “spec” helps?
3. Why would I buy or build in Clark County vs someplace else?

New vs. Existing: There are many for whom newness does not matter; all they are looking for is a comfortable place to live for themselves and their family   regardless of its age.   There are others who will end up buying a new or recently-built home because it’s the best way for them to get the amenities they require.   Finally, they are are the buyers who have the same feeling that many automobile buyers have: “I want one that nobody else has owned or used.”   Most of these buyers will end up looking at either building or buying something that’s relatively new.

On the other hand, there are buyers who have some friend or relative who had “a bad experience building.”   To them, new construction is to be avoided if at all possible.   Some people are put off by the expenses of new construction, especially if they are inclined to upgrade all the components of the home as it’s being built.

For the complete report, please go to my website report “New Construction: Should You Take a Second Look at Clark County Washington?“

There are important reasons why a buyer needs a Realtor ® who is a skilled negotiator even in a buyer’s market-

1. Well-priced properties are still receiving multiple offers.
   So your agent still needs to be prepared to help you move quickly and smartly to have your offer be the one that is accepted.
   
2. Many sellers need to ‘sold’ on the buyer (you) and on your offer (which isn’t what they had hoped for). The very existence of the negotiation process assumes that the parties have opposing interests. For example, you as the buyer want the best price and terms possible, while the seller wants the highest price and net proceeds. Your Buyers Agent will help the seller to see the benefits that your offer brings-
   • A realistic and fair price- the seller is likely being asked to sell for considerably less than she felt the property was worth a year or two ago. Your Buyer’s Agent is prepared to show evidence that your offer is in line with similar sales in recent months.
     
   • Likelihood of your offer closing- most likely your seller needs to buy another house but needs the current one sold and closed to accomplish that. She may have heard horror stories of buyers not qualifying and transactions failing after valuable market time has been lost. She needs evidence that you’ve been truly pre-qualified or pre-approved by a lender who has examined your financial qualifications. This enables her to purchase her new home with confidence.
     
3. Institutional sellers require special handling.
   With the increasing foreclosure rate, your seller may turn out to be a bank or other mortgage lender. They’re often remotely located, uninvolved emotionally from your particular property, and trying to juggle dozens (possibly hundreds) of properties they are in some stage of selling.They often have arcane and complex rules and procedures that must be understood and followed exactly in order to get them to even begin the negotiation process. A poorly trained or inexperienced agent may fail to successfully jump all their hurdles, with the end result that your offer is not even considered, let alone accepted.

Personal Note: These are also some of the reasons why I believe in the importance of “single agency,” where an agent represents only one party in a transaction–the buyer OR the seller–not both.

Several years ago I took special training and was awarded the designation “Accredited Buyer Representative ®.” When I represent you as a buyer, I work for your best interests. You can read more about ABRs here- The ABR ® Designation: For Real Estate Buyer Agents.

(c) 2008 by Janine Hook Pierson and Chuck Pierson. All rights reserved.

Address: 1911 NE 90th Circle, Vancouver, WA 98665       MLS #: 8092711

Bedrooms: 3       Baths: 2.5       Sq. Ft. (approx.): 1,809
Schools: Sara J Elementary; Skyview High

To see: Janine at (360) 600-1050

What a steal! Out-of-town seller will consider all offers over $200k received prior to 5 pm on 9/30/2008. [See 'Frequently Asked Questions' below.]

This Hazel Dell area home in Vancouver WA is just minutes to Highway 99 shopping, I-5 and I-205 freeways and Costco.   Immaculate home with upgraded great room floor plan with stone-look tile counters, huge island with eating bar, nook, nice appliances, has 3 large bedrooms, 2.5 baths, and decorator colors throughout.   Gas forced air heat and gas fireplace + AC.

This is an oversized cul de sac lot with a water feature and nice patio in back, neatened-up landscaping in front and back, and large side lawn for gardening, play equipment and/or entertaining.

More photos             Map

Frequently Asked Questions

Question: Is this a ‘short sale’? Will we be negotiating with a lender?
Answer: No, this is not a ‘short sale.’ All offers go to the sellers for their decision.

Question: Will the sellers see each offer as it is turned in?
Answer: No, all offers will be held until the deadline for turning in offers. Then all offers will be presented to the seller.

Question: Will other buyers (or their agents) be able to know the price and provisions of my offer after I turn it in?
Answer: No. The offers are kept confidential until presented to the sellers.

Question: My house isn’t sold yet. Will these sellers consider a ‘contingent’ offer?
Answer: There are no pre-conditions on the offers other than they must be more than $200K. However, one of the ways in which all sellers evaluate and compare offers is by their likelihood to close. Two otherwise equal offers will tilt the odds in favor of the non-contingent offer.

Question: We haven’t yet been pre-approved for a loan. Can we still make an offer?
Answer: All offers should be accompanied by a letter of pre-approval from a home mortgage lender. If you need to know some good ones, we can help.

Question: Is this an auction…does the seller have to accept one of the offers?
Answer: No this is not an auction and the seller can decide not to accept any of the offers. However, it is their intention to sell the property to a qualified buyer making a larger than $200K offer by Sept. 30 at 5 PM.

Question: Is this an ‘as is’ sale?   We always have a qualified home inspector look at any property we are considering buying.
Answer: This is not an ‘as is’ sale. You can have the property inspected. Your agent will discuss with you how you want to structure this and your offer will include that provision.

Question: How soon can the sale close?   When can we get occupancy?
Answer: Conceivably the sale could close in the second or third week of October (subject to time spent for inspections, possible repairs and approval of your home mortgage by your lender). Occupancy can be the day your deed records.

Disclaimer: The written sales contract negotiated between the buyers and the sellers will be the governing document for all provisions of the sale. Nothing stated in this Question/Answer section constitutes an offer from the sellers directly to any particular buyers.

After living in the Battle Ground area for 12 years, my husband and I decided six years ago to move. We were living in a 3,200 sf daylight ranch and now only needed about half that much room.

When we found the perfect 12-year-old ranch on an oversized cul-de-sac lot, we knew it was the right home for us. (Coincidentally, unknown to us, it belonged to a work acquaintance who had immaculately landscaped it.)

Things that influenced us to choose this neighborhood included:

• Close to major arterials (I-5, HWY 14, HWY 500, Padden Pkwy)
• 20 minutes to airport (PDX)
• 10-15 minutes to shopping centers (Vancouver Mall, Jantzen Beach Mall)
• Access to public transportation (C-Tran bus stop 1 short block away)
• Interesting mix of older and newer homes
• Lots of mature landscaping throughout area

Things we’ve come to love since moving in:

• Hiking access nearby for the Discovery Trail and also along the BPA powerlines easement
• Great Neighborhood Assoc. which sponsors-
  • Quarterly newsletter with lots of interesting local stories [requires free Adobe Reader]
  • Quarterly meeting
  • Annual picnic in nearby Franklin Park
  • Annual Dumpster Day (for all those things you don’t have any other way to dispose of)
• Neighbors who care
• Good for walking and bicycling
• Convenient to weekend Farmers Market

As a real estate agent I get to see lots of the neighborhoods in Vancouver and in Clark County. But the Northwest Neighborhood is a great fit for us.

Location notes: This is one of many neighborhoods within zipcode 98663. RMLS area 14 is pretty much the same streets as this neighborhood (except it goes a few blocks farther South).

Bedrooms: 3       Baths: 2.5       Sq. Ft. (approx.): 1,809
Schools: Sara J Elementary; Skyview High

To see: Janine at (360) 600-1050

This Hazel Dell area home in Vancouver WA is just minutes to Highway 99 shopping, I-5, Costco, and I-205.   Upgraded great room floor plan with stone-look tile counters, huge island with eating bar, nook, nice appliances, has 3 large bedrooms, 2.5 baths, and decorator colors throughout.   There’s a water feature and nice patio in back, neatened-up landscaping in front and back, and room for a sizeable play area or ?       More photos Map