Procedures to Purchase

Select an Agent to Represent You.

As you may be aware, we are a member of the Northwest Multiple Listing Service in the San Juans; therefore I can assist you with any of the properties listed with Coldwell Banker or other brokerage firms. One of the first steps in purchasing real estate on San Juan is to select an agent to represent you. Ideally you should select ONE agent that you feel will provide you with the level of customer service that you require. I would like to be that agent.

It is important for you to understand the Law of Real Estate Agency. Several years back, Congress interviewed hundreds of buyers to determine if they thought their agent represented them. In most cases, the buyer believed that the agent did represent them; however, the law at the time required all agents to be subagents of the seller, thereby technically representing the seller. It was for this reason that Congress revised the agency laws to the current ones, which allow for three types of agency representation.

Current law allows for buyers representation, sellers representation and dual agency.

Buyer’s representation is when the agent is representing the buyer and intends to obtain property at the lowest possible sales price. Seller’s representation is when the agent has a listing with the seller and is attempting to obtain the highest possible sales price. Dual agency is when the REALTOR shows a buyer one of their own listings and the buyer decides to purchase it. In the case of dual agency, the agent represents the seller as well as the buyer. I can provide you with a copy of the Law of Agency upon your request through my e-mail address simonson@sanjuanislands.com.

Determine Your Source of Funds.

Cash at Closing
Institutional Financing
Seller Financing
1031 Tax Exchange

If you intend to finance your purchase, it is prudent to meet with your lender and determine the maximum loan amount you are qualified for. This amount coupled with the cash you have allocated will determine the maximum sales price. We have numerous lenders that are interested in providing financing in the islands.

One of the Bankers that I work with regularly is Larry Enselman at Phoenix Mortgage. Phoenix has a very helpful web page, which details services and loan programs. You can access their page through www.Phoenixsavings.com

Determine the Type of Property You Desire to Purchase.

One of the best ways to go through this process is to develop a list of the desired property features, plus one that details how you intend to use the property. Then prioritize those lists. For example, when I work for a waterfront purchaser, I obtain the following information:

Is beach access required or is high bank OK?
Do you have a boat? Do you plan to buy a boat?
Bay protection or westside open current?
Bay view or expansive wide open?
Do you want to be near crabbing and clamming?
Do you want to see the whales, boat traffic and/or sunsets?
Amount of trees, direction of sun exposure, amount of privacy?

The responses I receive may direct me to different locations on the island. However, it may be that until a buyer has an opportunity to view the various different types of properties, they may not be able to narrow down or develop their priorities.

Once determined, this information should be communicated to your agent in order for them to focus on the type of property that meets your needs, thus saving you time and confusion.

Educate yourself on the Market and Inventory.

You need to educate yourself on the market and inventory level in the categories that hold your interest. Even if your purchase plans are sometime in the future, it is beneficial to take the time to view property with your agent because it will save you time in the long run. This process allows you to get acquainted, relate your preferences and develop your knowledge of the market. This will also help your agent to customize all future information sent to you. Buying property is a process of elimination. You will view many properties which you will determine are not suitable, then you will buy the one that is.

One way to monitor our market is to subscribe the local newspaper. This publication offers numerous real estate related articles plus property ads placed by the various brokerage firms. I can arrange a 90-day complimentary subscription for you upon your request. Please complete the relocation form attached to the Information Package Request Section.

Monitor the Inventory.

You need to stay in touch with the inventory and market trends until the right time or right property becomes available. Your agent should send you updates regarding the market and inventory on a regular basis. If you have viewed property with your agent, the updates will be more focused on the properties that you may have interest in. I have noted that purchasing property in the Islands can be a one day or five year process - which is totally subject to the client’s time frame. I provide this level of commitment and service to my clients. If you would like to be on my mailing list, please complete the relocation form attached to the Information Package Request Section.

Purchase and Sale Transaction.

Once you have located the property you desire to purchase, your agent will structure an offer to purchase containing the terms and conditions you have specified. The seller will either accept your offer as submitted or submit, through their agent, a counteroffer containing terms that are acceptable to them.

Important elements that should be included in the Purchase Agreement under the feasibility study provision are listed below:

Water source – Private well or Community System.
Private and shared wells that are class B or lower should be tested for quantity, bacteria and inorganic. Class A systems are community systems that monitor the quality and quantity on a regular basis as required by the County. These need not be tested, but their current standing should be confirmed through the County.

For more information regarding wells and water systems, you can contact one of the two commonly used well service providers: Denny Martel 360-378-2842 or Al Mauldin 360-378-6975. San Juan County Health Department can be reached at 360-378-4474.

Corner Stakes.
Do you know what you are buying? Corner stakes can be located or re-staked by local surveyors. Full surveys may be required due to lack of original plat stakes. We have numerous surveying firms available.

Septic system.
For existing systems, it is prudent to obtain a copy of the "as built" filed with the County. This will indicate the number of bedrooms the system was installed for and its approximate location, which is helpful for future improvements or repairs. If you are purchasing an unimproved parcel, you should obtain a perc test and design approved by the County. The two most commonly used designers are Jack Cory (www.jwcory.com) and Rick Petro (orcadesn@rockisland.com).

Permits.
Was the home constructed under a permit and does it have a final?

If you are contemplating new construction or a remodel, the current building codes and comprehensive plan can be accessed through the San Juan County web page at (www.co.san-juan.wa.us)

You can request a permit package or review the County's building requirements through their website which is located at (www.co.sanjuan.wa.us/permitcenter/sfd.html.)

Structural, Pest and Dry Rot Inspections.
It is highly recommended that all buyers obtain an inspection of the home prior to closing. The inspector physically examines all of the major components of the improvements and reports on their condition and recommends any repairs. For additional information regarding inspections and their benefits, you can contact one of the inspectors. The two most commonly used are Jack Cory (www.jwcory.com) and Home Inspections - Darrol Scheffer 360-378-4969.

Transaction Closing Process.

Due to the number of remote purchasers, the majority of our closings are handled through the express mail systems. We have two local escrow firms and two title insurers. We regularly cooperate with off island escrow firms, lenders and 1031 facilitators.

For access to the directory of San Juan Islands service provider webpages, Click Here