If any of you have been following Seattle real estate, you'll know that the market has gone
absolutely and verifyibly nuts. Granted we're WAY out in the burbs, not in the Seattle city limits, but it's nuts out here, too. Just for fun, I did a little internet research to see what our price range could get us in Rochester, the cheapest place we've lived for four years. Just one example... a gorgeous 3700-square-foot turn-of-the-century home on two acres with mature landscaping and trees in a desirable suburb, which also has a separate mother-in-law home on the property. What the same amount of money gets us out in the Seattle burbs is JUNK. Here's a fun one we looked at for about the same price as the Rochester one listed above: bank-owned 1100-square foot 1960's house two blocks from a huge and noisy motor race track where drunken fans show up on your lawn during the weekends amidst the deafening and constant roar of engines. The real estate tag line said, "This one is perfect for commuters - only 30 miles from Seattle and 25 miles from Tacoma." Evidently that was the BEST thing they could say about the property. Anyway, I tell you all this, not to garner any sympathy, because I LOVE living here, but to give you the kind of background you might need to understand the story I am about to tell.
Having sold our Alabama condo in July a year ago, we were ready to embark on finding a more sustainable living situation here. We met an incredible realtor back in February through a loan agent who was recommended to us by another family. We first went out house shopping on March 5th, and made an offer on this short sale home the following day.
If you are not familiar with short sales, it is a situation where the owner has more debt than the current value of the home, so they are hoping to sell the house where the mortgage-holding bank accepts a loss, rather than awaiting the inevitable foreclosure. It can happen if someone buys the house when the market is really high and is forced to sell when the market is much lower. Or it can happen when the owner somehow ends up owing on something else huge, too, and they can't afford both things.
Anyway, the home we made an offer on is only a mile and half from our apartment, has a lovely, large, fenced yard with a couple of trees, a covered back patio, three bedrooms, a bonus room and a freestanding garage out back which could eventually be converted to teaching space. It is on a quiet street in a quiet neighborhood. So there is a lot of potential. That's the good about it. The bad - well, hoarders lived there, so we actually couldn't see a ton of the property. The house was up to the brim with stuff, but the back porch and garage were so full of *stuff* - including multiple industrial refrigerators!? - that we couldn't really see much about the condition of the house. And there were several junked cars parked in the back yard, possibly impacting the condition of the septic system. And it is definitely a "starter" neighborhood.
But we made the offer. It was the best thing we had seen for our needs at that point.
With a short sale, you will have to wait MONTHS to hear a yea or nay from the owner's bank. So you sit and wait. Which we did. But we also kept looking.
Then a house I walk past almost every day on the way to my favorite city park came on the market in May.
It had been empty for as long as we have lived here, and it was bank owned. Pluses of this home: split level, three bedrooms, TWO bathrooms, TWO extra basement rooms, TWO-car garage, lots of parking, great neighborhood, nice trees, big back deck, AND so close to the park. Minuses - needed beaucoup de work. Our realtor estimated that if we were VERY thrifty, buying all the supplies on sale, and doing all the work ourselves, it would easily be $15K just to make it
livable. We were ready to take action. It was on a five-day online auction, and there was no inspection contingency allowed. We waited until day four of the auction and checked the bidding. And it had gone OUT of our price range. So we didn't enter the fray.
(As an after note, clearly a flipper bought it, because it is back on the market now, listed as a four-bedroom, and at nearly twice the list price of when we looked at it.)
Then in June, another house a few blocks from that one which I also walk past on the way to the park came up.
This one was also going to a five-day online auction, although it was currently lived in (not by hoarders, but certainly by *collectors*). This listing provided a detailed pre-inspection report for our perusal. Our realtor sent me all the documents on the house while I was visiting in Texas, and my poor parents nearly died looking at the horror of its condition online. Anyway, we did go have a look at it when we returned to Seattle a couple of days later, and it had some great plusses - three bedrooms, two bathrooms, separate living room and dining room, big fenced yard with nice trees, outbuilding, and a HUGE two car garage which could make a pretty incredible studio or two.
Again, we waited until day four of the auction, and again it was OUT of our price range. Done.
A week or two later I drove by "our" short-sale again, and I really started feeling I didn't like the neighborhood in terms of having students show up there. Not like it was unsafe. But a lot of it is run down, and it didn't seem like a lot of the houses were being cared for. Not the sort of place you dream of when you are looking for quality music instruction.
Then the next week, the bank said "No" to the short sale on some really strange technicality that both our agent, and the owner's agent (who ONLY does short sales) couldn't quite understand. We were right back where we started, which was absolutely nowhere.
Very shortly thereafter, I was walking through my favorite town-home development a couple blocks from us, where an unprecedented
five three-bedroom/two-bathroom/one-car-garage homes had sold during our fruitless search through all the neighborhood junk. And I was lamenting not having jumped on that bandwagon. Initially I hadn't, because we and our realtor thought we could find something suitable and freestanding in our price range. Which only matters because of all of our music noise and the number of people looking for parking for lessons. And I noticed that a three-bedroom place was getting new carpet on a Monday. My this-house-is-going-on-the-market-soon radar went up. A few days later, a sign appeared in the window by the front door saying that this HomePath property (*means it is owned by Fannie Mae) was
not on the market, and all questions could be directed to thus-and-such agent.
I called our realtor, and she called the agent, asking if we could submit an offer before it went on the market, asking when it would be up for sale, and what the list price would be. The answers were "no", "don't know", and "don't know." We walked by it nearly every day and waited. And then it came on the market suddenly one afternoon in August and our realtor called us. The asking price was at the VERY TOP of our price range, because they'd fixed it up really nicely - granite countertops, stainless steel appliances, and everything. And we made an offer, and it was a multiple offer situation, and we had no room to escalate, and it was gone.
I felt frustrated, and as I am prone to do under the circumstances, I was ready to take action. I printed out two maps of the Seattle region. I located all of our students' homes on one map, and I located all the Suzuki teachers I could find by zip code on another map. The first map had an obvious purpose in showing us how to sustain our current business, and the second map told us where there were enough students to support multiple teachers. These two maps had one little bit of overlap - North Renton/Newcastle. We had already looked up there, but you have to know that as you travel north from where we are, the housing prices go up, and up, and up. We were already scraping the bottom of the barrel down in south Kent. We had looked at a couple of places in the Renton Highlands area when we started our search, and they were big fat no's. One was a funny little bank owned house in a peculiar field of houses and trailers on a weird and winding network of dirt roads (not gravel - actually just dirt, aka mud), which you reached by making a scary left turn off a big multi-lane highway. It was nearly tucked under a bridge, and had a septic tank issue and backed up to a river, putting it in a flood plain. It was sort of like a place you might stay at summer camp. Interesting, but absolutely not what we were looking for. The other was an Airstream trailer on a horrible corner lot, also in a flood plain, which had been cut open and added on to, and it already had several offers on it.
So I started a search in earnest up that way (sadly thinking of leaving my favorite park behind), and I came up with a cute 1942 house with a mostly-finished basement in a neighborhood of 1942 houses, and a three-bedroom condo just off a major roadway. We looked at both of them the first full day they were on the market. The house was promising, but it already had a cash offer we couldn't compete with. The condo was also very promising. It was a corner unit, and the inside was very nicely redone. Two of the bedrooms were only on outside walls, and they immediately said "teaching studios" to me. The complex was quiet, and looked like it had a lot of kids. And mature trees. There were basically two concerns with it. First of all, the parking was a bit tricky, although we could buy an extra spot a block away for $50/month. And second of all, the exteriors of the buildings were horrifically depressing. They were an unfortunate accident of 1980's experimental architecture, and I sort of felt sick to my stomach looking at them. But, we talked it over, and persevered, and decided we should make an offer. Intellectually it was the right thing to do, and put us in fantastic proximity to future student flow. That evening I opened up the computer to email our agent to ask her to put in an offer for us, but I just decided to glance at the listings before I wrote to her.
And then I saw it. There was another 1942 house in that same neighborhood (built by Boeing during the war just up the hill from one of its plants for the influx of workers.) Being sold "As Is" but very charming. Only 840 square feet,
including the addition that had been put on at some point. BUT it had a large one-car garage plus an attached shed in the back yard My studio space monitor went on. We went up and looked at it the next day, and we decided right away to make an offer.

Our agent souped up our offer to the maximum in every way. She delivered it to the seller's agent in person the next day. She told the agent all about us and what we wanted to do with the house. She suggested the agent should have the sellers review and accept our offer right away without waiting the posted week for all the offers to come in. The agent said no, they'd wait the week. So we sat around waiting. One day later, our agent heard personally from the seller who told her that she herself was a music teacher and really liked us, and while they needed to wait and look at everything for the financial perspective, she hoped we could get the house. It also turns out she had lived in the house for six years when her two children were small, and she liked the idea of our two children living there. The following day we wrote her a letter telling her how much we liked the house and what we would like to do with it again, and enjoying our connection as fellow music teachers and parents. A week later on the evening of the offer review date, we got a call saying they had accepted our offer. We were not the highest of the
six-plus bidders, but we were high enough, and we had waived the inspection contingency via a pre-inspection, we had bid WAY up from the asking price, and we had asked our amazing loan guy for an expedited closing. The closing was set not quite four weeks out for September 19th. Everything felt so Providential.
Now, there has been a bit of a known issue with the sewer line which runs from the house to the main in the street, and many of the houses in the neighborhood, due to their age, have had similar problems. Our agent had already talked to the people who had been snaking out that line twice a year for the last twelve years, and a city official who was in charge of sewer stuff. It looked like it would be manageable.
A week before the closing, the underwriter for our loan mentioned they had a concern about the sewer condition, so our agent jumped on it and started doing everything she could to get it taken care of for us. She got the video footage of the sewer scope the owners had done in May, which prompted them to have some intrusive roots trimmed. We paid to have a new sewer scope done. And... it appeared that the line was now completely blocked by roots or more possibly, completely collapsed. Do you know how much sewer repairs cost? I did not. They start at about the price of a brand-new Honda Civic. It turned out that the owners now had an
unsaleable house on their hands unless they were to start over and only accept cash offers, or we would have to work together on this and come up with a solution. We and the owners decided pretty easily how to work out the pricing on such a repair, but getting bids which the underwriting could approve was much harder. There were weeks of phone calls back and forth between our agent, our loan guy, Jared, and contractors. Contractors would come out to the house to make bids *when they felt like it.* They each had different sets of concerns, so in the end the bids we received were wildly different prices and were like comparing apples and oranges. We kept signing extensions to the buying contract, not sure if we'd ever get closure. Twice things were looking so bleak that our agent thought we should give up on the house and wait for something else. Wait, of course, was the operative word, because she and I kept up our search this whole time, and there was NOTHING else popping up in our price range which would meet our needs. The market just kept going up and up, and we were getting left behind.
But finally, the whole thing has gotten itself worked out. The house closed on Friday, and we got the keys. Jared's dad is going to show up Monday morning to help Jared start on the work that needs to be done before we can move in (there is a lot - to make it safe and functional.) We are going to be moving the week of Thanksgiving, and there is likely going to be a lot of DIY in the next few months and maybe years as we work on getting the house to be quite livable. Not to mention a huge jumble of lesson rescheduling. As we will be TEN miles away from our current home, it will impact quite a number of people's timings with their lessons.
The pros of this house - fenced yard, bigger laundry area and bathroom, a nice-sized fenced yard, the aforementioned garage which will become two studios at some point, the storage room, plenty of parking with TWO driveways, a paved alley behind the house just right for bicycling, two blocks from a playground, and it is quite cute. And NORTH from here. Cons of this house - far from Lake Clark Park and Jeffrey and Linda's new place, pretty much everything is much smaller- bedrooms are smaller, and the kitchen is MUCH smaller, less closet space, needs a lot of work over time, but most of all, we'll miss this neighborhood and our wonderful neighbors.
I am in full-blown clean-out mode and have already offloaded two pieces of furniture, as well as broken appliances, and various bags of random stuff to Goodwill and Value Village, and I'm advertising things on Craigslist bit by bit. We've packed lots of books and CDs over the last few weeks, and are trying to get this show on the road in the little gaps of time between everything else. Our poor cats have no idea what is coming.