Moving to Bellingham questions (Vancouver, Arlington: sales, real estate, 2011)

[AnnaLee2]

I am starting this thread to ask questions as I prepare to move from Harford County, MD to Bellingham, WA in early 2011. My husband retires this July and I will probably retire at the end of 2010, economy willing. At that time we will sell our home which we own outright and buy a home in Bellingham outright. We are moving so that my husband can be near the rest of his family. Currently housing appears comparable in the two areas and we are tracking it as we prepare. A BRAC which will bring an influx of thousands of people into our area by 2012 should help. We have never bought a house outright and never in a sales tax only state. When I look at housing prices online, is the price at or near the price+taxes+costs I can expect to pay for the property assuming I made the offer at the listed price? If not, where can I find the buyer's addition costs, taxes, etc. on home purchases? Also, if anyone from the Bellingham area reads this, what is property tax in the area as a percent of assessed value?

[Ira500]

Property taxes should be about 1.2% of assessed valuation...
There aren't going to be any taxes when you buy. In WA State there is a real estate excise tax paid by the seller, 1.78%.
As a buyer, there will be some of the escrow and title company fees, and since you'll be paying cash, there won't be any associated loan costs.
If you use a buyer's side real estate agent for your purchase, that commission will also be paid for by the seller. Some agents and brokers offer to rebate some of their commission directly back to the buyer. Even if they're only rebating 20% of their commission back to you, it's still a chunk of change. A 3% commission on a 400,000 dollars is 12,000 dollars, and 20% of that is 2400 dollars. That could buy you a couple of meals out, or some furniture, or to pay the taxes with.

[Ira500]

Also, it would be unusual to pay more than 3000 combined for escrow and title, but you'd also be paying for pro rated property tax depending on what time of the year you bought...property taxes are paid twice a year, due at the end of April and October.

[AnnaLee2]

Thanks, that looks do-able. I will probably be back from time to time to this thread to ask more questions in the next year.

Originally Posted by Ira500

Property taxes should be about 1.2% of assessed valuation...

That's not too bad. A little higher than we have currently but only a little higher.

Originally Posted by Ira500

There aren't going to be any taxes when you buy. In WA State there is a real estate excise tax paid by the seller, 1.78%.

Do sellers tend to try to embed this cost in the asking price? If so, does/can this provide a rule of thumb for bargaining the price?

Originally Posted by Ira500

Also, it would be unusual to pay more than 3000 combined for escrow and title, but you'd also be paying for pro rated property tax depending on what time of the year you bought...property taxes are paid twice a year, due at the end of April and October.

That's not too bad. Maryland property taxes are paid in July but can be spread out too. Where I live it appears that the buyer will have the greater cost if the house is owned outright but many costs appear to be negotiable so it is hard to tell before the negotiations. I picked up some real estate agent ads directed at the incoming BRAC people offering to help the buyer's make the seller's pay most of the costs. So, what you are experiencing in Bellingham with the real estate agent sharing seems to be the "buyer's market" that we have right now.

[rkcarguy]

^^^Buyers market sort-of...
Low end homes under $400K are still going if the value is there.(not those who are upside down on their 900sq'ft "charmers" that they want $299K for).
High end places are pretty dead as far as sales. A majority of the residents are retirees and college students, so the income/cost of living ratio doesn't affect them. Homes still bring in good rents and everyday more old people come seeking to "escape" income tax. I'd expect to see another 20% INCREASE in the property values as we approach the 2010 olympics coming to Vancouver. I hope I'm wrong but I'm afraid I won't be...

[yukiko11]

Think about looking in the Mt Vernon, Stanwood, Camamo Island. Arlington and 7 lakes area. Just a half hour drive to Bellingham but much closer to senior interests. Also if you are over 65, you can get a reduction in your property taxes if you can qualify with limited income.