Steep condo won't raise tax value of others

Q: My Edmonds condo is in a building with six units. One recently sold for $760,000, which I think is well above what that unit or any other in the building is worth.

What effect will the sale of this unit have on the property taxes the rest of us pay?

A: Don't worry. The sale of a single condominium unit — or house in a neighborhood, for that matter — doesn't directly affect the taxable value of neighboring properties, said Randy Glover, an appraisal supervisor for the Snohomish County Assessor.

Instead, Glover said he looks at a number of comparable recent sales nearby — considering such tangibles as the homes' size, type and quality along with such intangibles as a view — before assigning a valuation.

Sales prices that seem abnormally high or low are thrown out.

"There are a lot of buildings in downtown Edmonds where there are four, six or eight units in the whole complex, and there have been no sales for years," Glover said. "So we have to look outside the building."

As for the $760,000 sales price, while it may seem high, "it's not out of line with what others are selling for" in downtown Edmonds, he said.

Q: The condo I just bought had a termite problem that was successfully treated before the sale closed. My plan is to update the unit and sell it soon.

This is an investment property I don't intend to live in. Am I legally required to disclose the termite situation to potential buyers?

Also, if the termites should return before I sell, and I treat the problem, am I required to disclose this to buyers?

A: There are some instances when you don't have to reveal the particulars about a for-sale property.

One example is if the house is an estate sale, you're the executor and know nothing about the home's condition.

But if you own it and have some knowledge of it, which you'll surely have after doing updates, be prepared to fill out the Real Property Transfer Disclosure Statement.

You'll find it contains no waiver because it's an investment property.

You'll also find a couple of questions directly related to pest problems.

One asks if there have been problems with pests, wood-destroying organisms or vermin.

Another asks if a pest or dry-rot inspection was done and if so, by whom and when.

Attorneys who handle disclosure-based lawsuits say sellers aren't sued for revealing too much and telling the truth. They're sued for fudging the truth or revealing too little. So there's really no benefit in not answering truthfully.

That's especially true when you realize you're not required to fix problems. You're only required to acknowledge those you know about.

Q: I am downsizing by moving into my mother-in-law apartment and renting out my four-bedroom main house. How does one figure the cost of shared utilities?

A: There's no set formula, said Phil Foster, president of Magnolia's Quorum Real Estate, which manages numerous houses and multiplexes that have shared utilities.

In the absence of separate metering, owners have several options:

Some apportion utility costs based on the square footage of each space, or the number of residents, or the number of bathrooms.

For example, if you rent to a family of four, and you're the sole occupant of your accessory unit, you could divide the utility costs by five. You pay one-fifth; your tenants pay four-fifths.

Home Forum answers readers' real-estate questions. Send questions to Home Forum, Seattle Times, P.O. Box 1845, Seattle, WA 98111, or call 206-464-8510 to leave a question on a recorded line. The e-mail address is erhodes@seattletimes.com. Sorry, no personal replies. More columns at www.seattletimes.com/columnists.