Reba Haas's Q&A

Whether or not you need an agent is actually up to you and most likely your experience in working with real estate. Each state has different requirements and for some an agent isn't necessary as they might use an attorney instead. We have many people who move here from NY who think an attorney is required for our state only to find that it isn't necessary to have both an agent and an attorney.Agents are not attorneys so we have to be careful about how we explain contracts - we cannot go outside our limited practice of law and expertise 0- but we know the general details of what the contracts mean to the buyer and seller. Each state and MLS may have their own forms and because of state laws they are different from place to place. This alone may make a difference to a consumer because it is highly unlikely that you'll know all these differences and how they might impact you.I've never subscribed to the idea that an agent 'must' be part of a transaction on one or both sides, but there are some definite pluses that can be had if the agent is providing value. Defining value is the key. Do you want someone to assist you with contracts, deadlines, providing resources, managing the transaction, communication between parties and more? Then by all means it is helpful to use a person versed in their market area and who has connections and experience.

testing zilllow site

There is nothing that says prices will somehow quickly bounce back to pre-recession levels. That's a misunderstanding a lot of people seem to have. In the Seattle metro area prices since August 2007 have generally dropped around 12% per year. The rebound in the market is currently anticipated to begin around mid-2010.  BUT, the question really is... what does that mean and what does it look like? Most likely lower appreciation levels of 3-5% per year. Not the hyperappreciation we had for about 10 years of 12-35% growth. People need to reset expectations.

Yes, it sounds correct.  Oftentimes even though one bank or servicer may be dealing with the short sale they are not the end investor for that note. They must get the investor to sign off on anything they negotiate. It's a good sign though if the front end short sale department has signed off, but it's still no guarantee.  We've seen many deals fail because the investor got bad information on the BPO or appraisal regarding value of a property. (BPO = broker price opinion). We are teaching a class this Saturday at Renton Tech on Short Sales & Foreclosures for anyone interested. [self-promotional post, removed by moderator]Good luck with your purchase!

never mind, doesn't have to exist here but can be added.

I am a listing agent for a townhome in the Lynnwood area and cannot post the property for sale here on Zillow as they only show 2 units of the 9 in the complex. How do we add a property?

One other thing... if you'll be using the property at all, then generally speaking, most people tend to buy within a 2-3 hour drive of their current home. Otherwise, they don't use the property as often as they would like because of the hassle of long road trips.It's also easier to get to if an emergency arises and you have to get there soon.Now, that all being said, I have 2 rental properties out of state.  But, I also chose to buy where I have family so when I go visit I can also write off a portion of my trips because I am also there checking on my rental properties.  I've got local management to handle the daily tenant issues but I help out wherever I can.

Cash flow is calculated the same whether this is a vacation rental or a traditional rental property. What you should be looking at as part of your decision making is whether or not you intend to use the place for yourself too. Does it then qualify as a 2nd home with some different tax write offs than a traditional rental?  Will you have property management?  Who will handle maintenance?  Is it seasonal or a year round vacation rental?I'd highly recommend you talk to your CPA before going out on such a venture.  You should figure out what is the best approach based on your taxable position and also what it is that you can put at risk in the purchase. If classes are available for you to learn how to calculate internal rates of return (IRR) on investments, then go for them because you'll need all the understanding of this as you can get.

The bank's decision to allow the out of state purchase may also fall upon the reason for your purchase. If you are buying speculatively in another state, they may choose not to loan to you, or may have a very high down payment requirement. If you're buying in FL, then you definitely want to make sure that you have someone locally there to help you navigate if what you'll be buying is valued correctly.Some states have dropped new, investor type purchases in areas outside of their main presence because of the high default rates in investor loans.I would suggest you call a few banks (larger ones) near you to ask them directly. Also, if you do decide to purchase out of state, whether for investment or a 2nd home, ask agents in the area where you're purchasing if any local lenders may have more leeway on lending to you with respect to down payment requirements and such. Be aware that most of them won't lend to you unless you have other accounts (like checking or savings) with them.