Purchasing a Home in WA (Gig Harbor: sale, real estate, rent)

[dancingirisheyes]

We're first-time home buyers and coming from So Cal. So needless to say, buying a home in WA is a little different then buying one where we are. I don't anticipate that our family and friends in CA will be much help when recommending what we should look for as far as exterior materials, heat sources, roofing composition, window features, acceptable property taxes, acceptable association fees, sewer vs. septic, public water vs. private well, types of windows, etc.

If you were purchasing a house in western Washington, what would you insist on for your home from those above listed criteria? And what would just be a nice bonus? What would you avoid?

Also, with CA listings, almost every house lists a/c. I've seen not even one house listing that mentions a/c and I know your weather gets hot enough for it from time-to-time. Is it really that people just don't have it out there or is there some real estate term that incorporates a/c and I'm just uneducated about it?

Being first-time home buyers is intimidating enough. Doing so in a whole new state is REALLY intimidating! We'd like to know what we're doing, what we should be looking for, what we should be avoiding, before we plunk down our life-savings. Any insight is appreciated!

[StealthRabbit]

Buy only what you can afford (25% MAX of NET monthly income for housing taxes, insurance and payments)

Buy at least 30% below market value, and something that is unique / desireable enough to resell immediately if necessary. (view, classic, cute, park, ...) Try to get one of the lower valued homes in the neighborhood, and ALWAYS remember Location, location, location....Be sure you can rent it for a positive cash flow (if necessary).

Don't listen to anyone who tells you a personal residence is an ASSET / investment, or who mentions the deductability of mortgage interest and property taxes (Hint... it COSTS you far more that you save)

I would buy a multifamily building and start generating some income; before long, you will not need a job (Sooner the better)... hint #2... a Single Family primary residence will not make you monthly revenue.


Don't don't, don't... buy a tract home (there are a million competitors when you go to sell it), get something with some 'appeal'

BEFORE you start looking in WA, make your first stop, the assessor's office, taxes can vary 100% within a county, assessor knows the 'sweet spots'. When buying income PRODUCING property, taxes are not as critical, as long as you can keep rents competitive.

IN Western WA... Don't buy a home in the shade of a bunch of trees. Think Sun, the more the merrier. (very important to remain healthy too).

Your list is really premature, as you need to decide if you want a rural or urban location before considering water / septic. A home inspection and your lender will be sure you get good stuff. Be careful about buying in the summer on 'low-lying' land, as winter may find your home surrounded by water. Don't buy into an area with HOA (JMHO). Be cautious of realtor's (I've used 2 in my 20+ RE purchases, both times were far more complicated that doing the deal myself). Your title company is your friend, they do all the work anyway, BUT you best know more than the average seller. Research a lot, ask a lot of ?? from PROFESSIONALS.

again... go for income producing property, not income reducing property

[Ira500]

1. Cedar shake roofs may look nice, but are awfully expensive to replace and don't seem to last as long as good 'ol composition roofing.

2. Stay away from the LP siding built in the 70's/80's. Nasty, toxic stuff.

3. Most places really don't have AC. We only get a few days per year 90 degrees or over.

4. Whatever heat source you get, efficiency is important..If you get a spectacular deal, you can always buy a new furnace, but natural gas seems to be the most preferred and least expensive, compared to oil or electricity. From an aesthetic viewpoint, I don't like electric baseboard heaters. A little too drying. I have an oil furnace as many older homes do, but it got updated with a high efficiency burner, but heating oil is pretty darned expensive...Modern day boilers and heat pumps are an asset and will save you money and increase your comfort.
As long as you know your septic system is fairly new, that's no reason to freak out, and you'll save money on a sewer bill, but you won't be able to drive or plant deep rooted plants where the septic drain field is...I'm much more scared of living with a well, and would greatly prefer to be on a public water system...

[mthomson]

Originally Posted by dancingirisheyes

when recommending what we should look for as far as exterior materials, heat sources, roofing composition, window features, acceptable property taxes, acceptable association fees, sewer vs. septic, public water vs. private well, types of windows, etc.

Exterior materials, you'll want to look for HardiPlank, a cement based material that looks great and wears great, or natural wood. As IRA said, watch out for LP (often listed as "Wood Products"). Roofing you'll want asphalt composition for the most part, but anything other than cedar shake. Windows are best as double paned vinyl. In Gig Harbor, HOA fees will range from $100/yr -- $250/yr. Almost everything in Gig Harbor is septic, and it's not a concern. Mostly GH is public water, but there are some shared wells. Every Purchase and Sale contract you write should have a well and a septic addendum to make sure it's in good working order before you buy. Taxes on a $365k-$400k home (median price for GH) will be around $3000-$4000/yr.

Originally Posted by dancingirisheyes

Also, with CA listings, almost every house lists a/c. I've seen not even one house listing that mentions a/c and I know your weather gets hot enough for it from time-to-time. Is it really that people just don't have it out there or is there some real estate term that incorporates a/c and I'm just uneducated about it?!

Instead of AC, most people here use heat pumps. They DRASTICALLY reduce your energy costs all winter, and serve as A/C in the summer. We put one in about 3 weeks ago and couldn't be happier.

Originally Posted by dancingirisheyes

Being first-time home buyers is intimidating enough. Doing so in a whole new state is REALLY intimidating! We'd like to know what we're doing, what we should be looking for, what we should be avoiding, before we plunk down our life-savings. Any insight is appreciated!

Being first time buyers, you'll also get the $8000 tax credit if you buy by Dec 1. That's a nice bonus, but don't let that dictate when you buy. Prices will continue to decline here for a while. However, interest rates are climbing sharply the past 2 weeks, and a general rule of thumb for a $400k home is that each 1% rise in rates nullifies a 10% decrease in home price. Income producing, multi-family properties are tough to find in Gig Harbor. They're also going to get you far less in re-sale than a single family home. If you're in it for the long haul, you don't mind being a land-lord, and you don't mind sharing your property with others, it's a good financial move. If you're like me and you tend to move every 6 years or so, want some privacy, and have no desire to be a landlord, probably not a good idea.

[dancingirisheyes]

This is really, really helpful! Thank you guys!

I'm seeing two things in the building info - wood products and wood exterior. Are both of those considered LP Siding or just the "wood products"?

[nwcountrygal]

HardiPlank siding and a heat pump - agreed the best... One of my houses has the LP and have to caulk it paint it all the tiime - horrible stuff. The HardiPlank is great have in on the house I live in --
Stay away from propane heat if you can. Wells - never had a problem with mine all the years but public water is easy however I would prefer to stay away from chemicals in my water. Again some trees are nice - stay away from Firs around the house so it will be sunnier and gutters wont fill up every season with junk. HOpefully you have an agent? been here before?Where in Western WA you looking?

[mthomson]

Originally Posted by dancingirisheyes

This is really, really helpful! Thank you guys!

I'm seeing two things in the building info - wood products and wood exterior. Are both of those considered LP Siding or just the "wood products"?

Wood exterior is usually cedar. Wood products is LP.

[dancingirisheyes]

Thanks Matt!

Originally Posted by nwcountrygal

HardiPlank siding and a heat pump - agreed the best... One of my houses has the LP and have to caulk it paint it all the tiime - horrible stuff. The HardiPlank is great have in on the house I live in --
Stay away from propane heat if you can. Wells - never had a problem with mine all the years but public water is easy however I would prefer to stay away from chemicals in my water. Again some trees are nice - stay away from Firs around the house so it will be sunnier and gutters wont fill up every season with junk. HOpefully you have an agent? been here before?Where in Western WA you looking?

Really helpful! Thank you!!

No agent yet but we're not quite in the serious buying stage yet. We're in the research stage so we don't go into the process totally clueless. I mean, we had 34 houses in Gig Harbor on our favorites list yesterday but now we at least know what to avoid so we can narrow the search down and have a more clear (reasonable) expectation!

My husband and I have both been to WA but its been years (20 for me, 14 for him). We're taking a vacation there over the 4th of July weekend with the family. In an ideal world, we'd be able to take another vacation there during the winter but that's probably not possible. We've both been to Portland in the winter though so hopefully its not much different.

[Ira500]

We've both been to Portland in the winter though so hopefully its not much different.

Quite similar. Portland gets just a tiny bit colder in the winter, so they get just a little bit more of that delightful freezing rain, and Portland is just a tiny bit warmer in the summer.

[Fat Freddy]

Have you considered hiring a contractor and having him build a new house for you?

I don't mean a "tract home builder", I'm talking about a real general contractor with years of local experience and a good reputation.

In many parts of Western Washington, mold and rot are huge problems, even in houses only a few years old. By building new, you avoid those problems and get to take advantage of recent technology which can add up to substantial reductions in energy usage and future maintenance costs.

Depending on the lot you build on and factors like availability of utility hookups, building isn't all that much more costly than buying a pre-existing house, and right now, the price of wood is at an all time low which can add up to big savings.