Here are some additional great questions I get asked frequently when working with home buyers in West Seattle.
How many homes should I preview before making an offer?
There is no magic number. Some buyers look at homes for months before making an offer and others know right away they have found the perfect home. It’s normal to feel like your haven't seen everything and want to continue looking; thinking maybe there is a better one I haven't found yet or coming on the market soon.
What do you think the seller will accept as a fair price for the home?
Every sale is different. Homes are not commodities. The market conditions and the reason the seller is selling are important.
Currently, its a strong sellers market in Seattle. Demand for homes is high and availability low. In this market, sellers are often seeing multiple offers (on homes that are priced fairly to start). The competitive nature of some buyers is pushing offer prices much higher than the seller’s original asking price. How much depends on location and condition of the home. Buyers are also removing or not including many contingencies to their offers such as home inspection, title review, financial and appraisal approval, to make their offers look more attractive to seller. In a seller’s market answering this question is tough as it often has to do with how much another buyer wants the home and less about wether or not the seller would think your offer was fair.
In a balanced market were demand and supply were ample for both sellers and buyers, answering the question would depend more on the reason the seller was selling their home. For example a seller that needs to relocate by a certain date maybe willing to accept a offer for less than their asking price if it meant they could stay on schedule. A seller just selling to reap the equity in their home way be willing to wait for the right offer and less likely to negotiate on price.
How quickly can the transaction close?
A typical home transaction takes about 30-45 days to close. Most of this is just waiting for your loan to be processed by your chosen lender. The length of time to close will also depend some on the loan type you have applied for and how far the loan underwriter has dug into your financial information before you reach mutual acceptance with the seller on a purchase. It is possible in some cases to close sooner than 30 days, but with new federal loan regulations is becoming more difficult to do so.
Timing to close will also depend on if you are having a home inspection (or how quickly you have a home inspection) as most lenders will not order their appraisal of the home until after you have approved the condition of the home and moved passed the home inspection phase of your agreement.
For buyers that can pay all cash for the home and not have to wait out the loan approval process closing can happen rather quickly.
I you have a real estate question of your own please email or call me anytime. I’m happy to help in anyway that I can.
David Warren
Metropolist
425-760-8285
david @ metropolistgroup.com