Winning Strategies for Multiple Offer Situations

Let's discuss multiple offers. If you're a seller with multiple offers on your home, you're in a great place. However, buyers should expect to compete with ten other people for a home.

Multiple offers have slowed down substantially in the Puget Sound area. Previously, if you were a buyer, you had a 95% chance of ending up in a multiple offer situation. Now, those odds have dropped to a 35% to 40% chance of being in a bidding war, depending on your area.

So, if you're a buyer, how do you win in a multiple offer situation? Pay attention to the sales price. Think like a seller. In today's market, sellers get their asking price or higher. In a multiple offer situation, homes can sell anywhere between 3% and 15% above the asking price.

Additionally, don't look for homes at your maximum sales price. For instance, if you qualify to buy a $600,000 home, look at homes for $550,000. That way you have a buffer if you do need to win a bidding war based on sales price. Know and understand your budget.

You can avoid being caught in multiple offers if you bid on a house that has been on the market for two weekends or more. That's when the hot period has passed, and you could get the home for the asking price or below.

There are more strategies for you to win in a multiple offer situation. We will cover those in upcoming videos. Stay tuned! If you have any questions, give us a call or send us an email. We would be happy to help you.

Market Update from Seattle

Hi, everyone! Today, we’ll discuss market conditions in the Seattle area.

In September, the average asking price was $633,000 in Seattle; $230,000 in Tacoma; $342,000 in Everett; and $953,000 in Bellevue. Likewise, the average sold price was $646,000 in Seattle; $228,000 in Tacoma; $335,000 in Everett; and $953,000 in Bellevue. It is still a seller’s market, but it’s slowing down!

The number one reason why people don’t move to Western Washington is the home price. However, there is an exception: high-tech industry home buyers find Seattle very affordable.

The average time it took to sell in Seattle took 23 days; in Tacoma took 46 days; in Everett took 32 days; and in Bellevue took 25 days. On average, people live in their homes five to seven years before moving.

If you have any questions about what these numbers mean for you, please don't hesitate to reach out to us. We're always here to be your real estate resource!

Are You Ready to Buy a Home?

Buying a home is a serious step. One common mistake buyers and sellers make is not being emotionally prepared to make an offer on a home.
Some buyers can spend a couple of years getting their finances in order. Then they get their loan approved and look at homes with a real estate agent. Finally, they find the house of their dreams, and what happens? They want to sleep on it, or pray on it, or get a family member's opinion before they make on offer.

The reality is that in this market, if you snooze, you lose. Correctly priced properties are just flying off the market. You have to be emotionally prepared to make that decision and make an offer. Look at homes on Tuesdays, Wednesdays and Thursdays if you are ready to make an offer. Weekends are the worst time to make an offer because a lot of other buyers are out there and you are almost guaranteed to wind up in a multiple offer situation.

If you have any questions, please do not hesitate to reach out to me. I would be happy to help you.

What Is the Number One Mistake Seattle Buyers Are Making?

What are real estate conditions in Seattle like right now? Many folks in our area are curious about whether now is the time to buy and whether conditions are favorable for a successful home sale.

There are ten key mistakes that buyers in our area make all the time, but right now the number one mistake buyers make is waiting to make their move. There are several reasons why:

  • Inventory is low: We only have four weeks worth of inventory; if nothing comes on the market in the next four weeks, there will be nothing to buy in our area!

  • Interest rates are still low: Interest rates are below 4% right now. It's pretty safe to say that you might never see rates that low again!

Think about current conditions this way: a 1% increase in interest rates means the amount of home you can purchase just went down by 10%. For example, if you were qualified to buy a $400,000 home, but rates jumped by 1% before you found a home, you would only be able to afford a $360,000 home!

The most deadly mistake that buyers are making right now is that they're waiting to buy. We don't want you to do the same! Give us a call or shoot us an email with any of your questions and concerns about our current market. We would love to hear from you!

How to Avoid Rotting on Siding When Home Buying

Today's topic is siding, a very important part of the exterior of your home that can hurt your chances of selling.

Here in the Pacific Northwest we have had problems with a certain type of oriented strand board or LP siding. Essentially, this siding is made of a pressed, wood-like material with an exact pattern. It's not like the cedar siding you'll see on some homes where the patterns differ.

Because it's so moist here in the Pacific Northwest, this siding will start to wear if you don't keep it painted. If this type of siding isn't kept up, it starts to rot and will need to be replaced. When you're looking at homes, you want to take a look at the bottom of the boards to ensure that moisture isn't being absorbed and rotting the siding.

When siding begins to rot, moisture then gets between your exterior wall and your interior wall and gets on your insulation. This can result in black mold, which is a huge pain to deal with and can even be dangerous!

One of the best places to look around the exterior of a home is where the exterior of the fireplace is. Those areas tend to rot the most and the fastest. If you view a home that has rot occurring, you want to be very careful. Replacing LP siding can be very expensive, costing you tens of thousands of dollars.

So, if you're looking at homes with LP siding, be sure to call a professional to take a look at it. If you're selling your home, you probably want to do the same, as rotting siding may be a great way to scare buyers away.

If you need real estate assistance of any kind, give us a call or shoot us a quick email. We would love to help you out!