When you’re ready to make a move, the last thing you want is a lengthy transition and the uncertainty that comes with it. While things rarely go perfectly, one of the biggest factors that determines a move is how long it takes for your current home to sell. This can affect the money available to buy a new home, the move-out date, and a whole host of other aspects of a move. Therefore, it’s important to be prepared for the time it will take for your home to sell. The question then becomes, how long will that be?

The short answer is, of course, that it depends. A house is sold based on more than just its price, or how big it is. Location, amenities, condition, and the relationship between the buyer and seller are all important factors when determining how quickly a home will sell. Overall, a home that is in good condition, in a good neighborhood, and priced fairly should sell quickly. Of course, that still doesn’t touch on how long it will actually take.

The current market is exceedingly favorable to sellers. July 2018 the average number of days a house spent on the market was only 20 days for the region of King, Snohomish an Pierce counties. This is a remarkably low number, and the average days on the market have been low (30 days, give or take) for some time now. Furthermore, the Seattle area is currently one of the most desirable locations for housing, so the time your property spends on the market may be much lower than the average. Therefore, if you’re selling a home in the near future, be prepared for a brisk change of hands.

Of course, the other factors still apply, and the amount of effort it will take to make your particular home sell best will add some time to the overall process. Regardless of the market, it’s important for your house to put its best foot forward, so to speak. Talk to your real estate professional about what will make your own home sell quickest, and be prepared for some surprises along the way.

If you’d like t know more about how your home would take to sell please contact me. I’m happy to answer any questions you may have. 

David Warren

Metropolist - Managing Broker

425-760-8285 / david@metropolistgroup.com

The Seattle housing inventory level is rising and demand is slowing just enough that we are starting to see a balancing in the real estate market. You may not be able to easily find your "perfect" home, but the availability has certainly increased since the beginning of summer. Unlike the extreme competition that buyers faced over the last few years, many new listings are not selling their opening weekend, some are still available into their second week on market before receiving an offer. Gone are the multiple offers from 5, 10 or even 20 buyers. Asking prices are still strong, but price corrections are on the rise. Contingent offers based on the successful sale of a buyer's current home are coming back too. 

If you are thinking taking advantage of this change in the market place and purchase a home here are seven things you should consider before making a housing investment:

1. Finances First: Resist the urge to place bids before you have everything in order financially. Get your credit and loan opportunities figured out in advance, and make sure you’re looking into smart money and not just easy money. Getting pre-approved and having your financial situation under control at the start of the process will allow you to make smarter decisions and save you from money problems later on.
   
2. Shop for the Future: When looking for your dream home, consider where you might be in five years, if not longer. Do you plan on getting married or having children? Does wanderlust keep you eager to change locations? Do you want a forever home now, or do you see yourself trading up a few times? The perfect home for today may not be the perfect home for your future life, so keep that in mind when deciding what home to buy and how much to pay for it.
   
3. Location, Location, Location: You’ve heard that repetition a hundred times, but it can’t be stressed enough how valuable a good location is for a home. School districts, proximity to entertainment or necessities, and neighborhoods are all huge things to think about before making a purchase. On a smaller scale, don’t ignore the very land your potential home sits on. A great yard can make for a much more pleasant living experience, so give the greenery a good once-over before you buy.
   
4. Be Serious About Inspections: It’s vital to get as much information as you can about the house you are going to purchase, and a lot of that will come from thorough inspections from reputable inspectors. Don’t be afraid to dig deeper in the inspection process. Knowing more about the flaws of the home may give you some leverage in the negotiation process, or you may uncover a deal-breaker that will save you from major headaches down the line had it gone unnoticed. 
   
5. Take It Slow: While the actual transaction of buying a home can feel like it’s moving at a breakneck pace, it’s important not to rush into buying a home you’re not confident in. Take your time when shopping to find something that really feels right for you, both personally and emotionally. When the time finally does come to finalize the purchase, the extra time you spent making the right choice will really pay off.
   
6. Negotiate Well: Having a great real estate agent on your side will make all the difference when getting down to business in the buying phase. With the decreased inventory in the Seattle housing market causing unexpected changes and competition, expect plenty of curveballs and surprises to show up along the way to your dream home. You may need to make some creative decisions with your bidding and negotiations. Being light on your feet and willing to roll with the punches will allow you to weather the storm of the Seattle housing market and come out with a great home at a reasonable price.
   
7. Don’t Forget the Fees: Buying a home isn’t as simple as just providing a down payment and paying the monthly mortgage. Be prepared for taxes, insurance, fees associated with buying, maintenance and repairs, and a whole host of other costs, both seen and unforeseen. Make no mistake—buying and owning a home is not cheap. But preparing yourself beforehand will go a long way to making home ownership feel manageable.
   

With these tips in mind, buying a home in Seattle should feel a lot less intimidating. There will still be plenty of challenges on the road to home ownership, but a level head filled with the right information, plus a great real estate agent and a little luck, will ensure you’ll get the house you’ve always wanted, at the right price.

If you have a question about purchasing a home please ask. I’m always happy to help in any way that I can.

David Warren

Managing Broker | Realtor

Metropolist

425-760-8285 / david@metropolistgroup.com

It should go without saying, but the price of a home is one of the most important factors in determining its salability. Regardless of location, condition, or size, the price is how a customer decides what pros and cons are the most important. The price will be the deciding factor on what a customer can live without, and what they absolutely need. So, naturally, determining a fair price is important. As the owner, however, you don’t want to undercut your own profit. Pricing is an important and tricky topic, but hopefully these thinking points will give you a foundation to build off.

1. Local market: Take a look at how homes in your area have sold over the last three months, as well as active sales. Keep the search within about a half-mile radius of your own home, and pay attention to any location changes that may affect value—proximity to busy roads, view, school district divisions, and any other variables that can help explain price discrepancies. When you have an idea about recent comps (comparable properties), check to see how their listing prices differed from their final selling prices. This will help gauge the demand for your area, as well as suggest whether homes were valued properly or not.
2. Size matters: It’s real easy to compare your home to a similar home that just sold and assume that if it sold for X then you should be able to sell your home for X as well. The biggest pricing mistake sellers make is not taking into consideration total square footage when comparing homes. If the average comparable home is selling for $300/SQFT and the comparable home you are using is 200 SQFT larger than yours, then its realistic to assume your home could be valued $60,000 less. 
3. Condition and age: Be honest about your home’s condition. It’s naive to think buyers will not notice. Either correct the material defects before listing the home for sale or make an adjustment to your list price to reflect the homes true state. The age of a home’s main features like the kitchen and bathroom finishes should factor in as well. Appraisers consider home finishes older than 10 years dated and of less value than a newly remodeled home. 
4. Marketable colors: It’s very common for some homeowners to make a home uniquely theirs with colorful paint and carpet choices and flashy backsplash tiles, but when it comes time to sell, your desire for the dramatic may work against you. The majority of buyers prefer neutral, modern colors and the few that like strong, bold color choices will probably want something that is unique to their personality. To a buyer there is a huge psychological difference between having to make color changes and wanting to make changes. If neutralizing your home color palette is not an option make a list price adjustment to reflect the estimated costs a buyer might have to incur to make the changes after closing.   
5. Learn from others’ mistakes: During your research, you will probably come across several red flags from other sales. Pay attention to homes that did not sell, and consider what factors may have been involved in this result. Additionally, look at how the prices of other sales changed over time. While cutting the price is not in itself a bad thing, it’s telling if a house went through several markdowns before finally selling.
6. Consider the number: Retailers have learned that a product for sale at $1.99 has a much greater psychological appeal than then same product priced at $2.00. Store owners know that consumers have a tendency to mentally drop off the .99 cents when they make quick decisions on price. This type of psychological pricing does work, but I advise against it when pricing a home. There is another major factor to consider when setting a price especially if you are valued near a major price milestone. Buyers generally search for homes within a set ideal price range and may easily miss your home when searching. For example, if your home is valued roughly around $525,000 consider listing at $525,000 rather than $524,950. This way you will also get the attention of buyers starting their search at $525,000 and looking upward and not just the ones maxing out at $525,000. 
7. Don’t be afraid of change: If you find that, after all your research, you’re still not getting any bites, don’t worry. Correcting the price may be necessary due to some factor you didn’t consider. Of course, your real estate professional will help guide you if this is the case, and with the market being as seller-friendly as it is, a change in price will probably not be necessary if you prepared correctly. Furthermore, when the purchase offers come in, try to not be intimidated. Lean on your real estate professional and consider their advice. After all, they’re paid to help you make the best sale possible!
8. Professional opinions: Some homes are just hard to find comparable homes when trying to establish a value. Using the services of a professional real estate broker or local appraiser may be the best option. You can have a seasoned pro take a look at your home at whatever stage you’re ready to bring them in. A real estate broker’ services are generally free to a seller if the seller uses them to list the property for sale. A professional appraiser may charge up to $1,000 for their professional appraisal report. This might a viable option if you tend to sell the home on your own without the help of a professional real estate broker. The cost of an appraisal may be much less that the unwitting loss of grossly under valuing your property when you list it for sale.

Pricing a home is part art, part science. While you can do all the research in the world, a proper sale will also take some finesse and creativity. If you'd like the opinion of a professional Seattle real estate broker to help you determine the value and marketability of your home please contact me any time. I'm always happy to help.

David Warren

Managing Broker | METROPOLIST 

425-760-8285

david@metropolistgroup.com

Is the next great real estate opportunity investing in rental properties?

Harvard University recently published a report of the rental market in the United States. This study included rental-market trends over the last decade and predictions for the next ten years. One of the most surprising facts from the study is that renting a home has become a more common option for almost all types of Americans.

Is the next great real estate opportunity investing in rental properties? Harvard University recently published a report of the rental market in the United States. This study included rental-market trends over the last decade and predictions for the next ten years. One of the most surprising facts from the study is that renting a home has become a more common option for almost all types of Americans.

These are some of the results found in the report:

• The number of renters increased for people with all levels of household incomes.
• The number of renters increased for since people, couples, and parents with children.
• The number of single-family houses that have been converted to rental units also increased.

Rising Rent Costs in Most Cities

This housing study also looked at America’s largest rental markets. Three out of four of the biggest population centers had vacancy rates of less than five percent. Typically, 95 percent occupancy is considered full occupancy by property management professionals. Only one out of the 75 biggest markets had a vacancy rate that was over 7 percent.

Because vacancy rates are low and demand is high, property owners have been steadily increasing rents. While renting has become popular with people in different economic classes, it may be the only choice for people with modest incomes. The main concern of the study was not that landlords would have trouble finding people to lease properties but that people with lower incomes would be unable to find affordable housing in many parts of the county.

Will the Rental Boom Continue?

The study predicted an even greater demand for rental apartments and houses in the next decade. The baby boomer generation is now aging into senior citizens. The authors of the study believed that many seniors would choose to sell their houses in order to cash out their home equity and enjoy the simplicity of renting.

If the predictions in this study are correct, many of those sold homes will get converted to rentals. This is because upcoming generations don’t seem as eager to buy a house as their parents or grandparents once were. The study cited higher levels of student loan debt and tighter qualification rules for mortgages as some possible reasons.  

Even though both small and large investors have been supplying more inventory to satis the needs of all kinds of renters, the supply is not keeping up with the demand in some places. The next great real estate opportunity in the United States might be an investment in rental property. Vacancies are very low and rental prices are rising. Of course, markets differ across the country and even in different parts of the same city, so wise investors should do their research.

Condos for sale in West Seattle - Sales trends May 2016 vs. May 2015

Homes for sale in West Seattle - Sales trends for May 2016 vs. May 2015

My experience with buyers in the Seattle area is they want to know as much as they can about a home before making an offer. So as a seller its a good idea to be proactive and have answers to their questions ready before you list your home for sale. Here are some of the more basic questions home buyers ask:

1. How old is the home?
2. Have their been any renovations? Where all necessary permits obtained?
3. What is the age of the roof?
4. What type of heating system(s) does the home have? How old is it? When was it last serviced?
5. What is the age of the water heater?
6. What is size of the lot? Where are the boundaries?
7. What appliances will come with the home?
8. What the monthly expenses for heating, electricity, gas, water & sewer, HOA dues, etc?
9. Are all the windows double pained?
10. When was the home last painted? How often does it need to be painted?
11. When was the electrical panel last upgraded? 
12. What type of piping doe the home have for water service? Galvanized, copper, PEX?