I’m often asked by potential home sellers in the W. Seattle market, when is the best time to list a home. The simple answer to this question is “when its the best time for the seller.”  A Seattle area home in good condition and priced right will almost always sell at fair market value or better.

Common belief is that the best time is in the spring. While the interest level of home buyers in Seattle certainly goes up, so does the competition of other homes for sale. In the fall, there is less competition and also fewer buyers.

In the current Seattle’s seller’s market there doesn’t really seem to be a bad time to list a home for sale. The demand is so great compared to the supply most homes are selling quickly and for well over their asking prices.

If you’d like to discuss the possibility of seller your home. Contact me, I’d be happy to help you develop a marketing plan that works for you.

David Warren

Managing Broker

Metropolist Real Estate

425-760-8285

david@metropolistgroup.com

If you’ve been searching for a new home in the West Seattle area in the last two years you know it’s a hot seller’s market. The number of available homes is low and the demand is high - and still growing. The competition among buyers can be aggressive and Seattle sellers are loving it.

In a normal, balanced market buyers can make an offer with standard contingencies such as a home inspection, financial approval, review of the preliminary title report, approval of the seller disclosure statement, etc. In a seller’s market, the seller is in a better negotiating position and their main goal, in addition to getting the best price possible, is to reduce their risk of the sale falling apart due to a buyer contingency.

So if you want to appeal to the owner of that Alki Beach home you have your eye on, here are a few tips that can help:

1. Be Financially Ready - If you are planning on mortgaging your home purchase have your loan pre-approval done before your start looking. You need to be ready to move on a property quickly when the right one comes along. 
2. Loan Type - Loan types run different risks to sellers. FHA and VA have more conditions in the appraisal process. VA can cost the seller more in closing costs due to VA requirements. Using a traditional Conventional loan can improve your odds with a seller against buyers using FHA and VA loan packages.
3. Shorten Your Loan Approval Process Time - Ask your lender to start the actual approval process and move your application into the underwriting phase. The further along you can get in this process the shorter you can make your closing time needed by the your lender. 
4. Cash is King - If you have the ability to pay all cash it may be worth it to you do to so. An all cash offer greatly reduces the risk a seller faces compared to a mortgaged purchase because it eliminates the need for a financial contingency all together. Some buyers are borrowing funds from non-institutional sources (like family members) and then financing into a mortgage once they own the home paying back the temporary cash loan.
5. Pre-Inspection - If the seller will allow it, ask to do a pre-inspection of the home before writing your offer. This way you do not need to include an inspection contingency making your offer much more competitive against one that includes the request. 
6. Preliminary Title Report - have your agent ask the seller if they have a preliminary title commitment report available to view prior to writing an offer. Reviewing this information early will allow you to comfortably exclude a title review period contingency with your offer
7. Seller Disclosure Statement - Every seller in the State of Washington is required to provide a Seller Disclosure Statement at the time of sale. This document is a series of questions the sellers must answer about the known condition of the home. Have you agent ask the seller if they have one ready to review prior to writing your offer. Like the title report, reviewing this information ahead of time allow you the possibility of removing this review period contingency from your offer.
8. Appraisal Contingency - Your lender will require an appraisal of the home to make sure they are not over lending on the property. If your lender is willing to mortgage 90% of the purchase what they are really offering is to mortgage 90% of the appraisal value regardless of the agreed upon price. Any buyer using a Financial Contingency has an appraisal contingency built into their offer. Some buyers in this hot seller’s market are removing the appraisal part of this contingency - basically stating that should the appraisal value come in low they will pay the difference in cash at closing.
9. Earnest Money - earnest money shows “good faith” to the seller that you truly wish to purchase the home and in the event that you decide to back out of the transaction for a reason not covered under a contingency then you will forfeit the funds to the seller as compensation for taking the home off the market and passing up other offers. Should you purchase the home then your earnest money becomes part of your down payment. The amount of earnest money you are willing to put up as “good faith” can be used to impress the seller and show how serious you are regarding the purchase of the home. 
10. Non-Refundable Funds - Some buyers are going as far as making some or all of their earnest money non-refundable and payable directly to the seller at mutual acceptance. The idea is to entice the seller that may be in need of immediate funds. The risk is that once the funds are made non-refundable they are the sellers to keep even if you need to back out under a contingency. 
11. The New Love Letter - Many buyers write Love Letters to sellers explaining how much they “love” the home and hope the seller will pick them over a competing offer. In the hi-tech world of Seattle, buyer’s Love Letters have become Love Videos. Buyers are shooting short 1 minute videos on their mobile devices to introduce themselves to the seller and say a few quick words about why they love the home. A link to the video is then sent along with the offer.

If you’d like to learn more about buying in a Seller’s Market please contact me.

David Warren

Managing Broker

Metropolist Real Estate

425-760-8285

david@metropolistgroup.com

Many homes in West Seattle have aging sewer lines that run from the home to the main sewer line in the street. These lines are becoming a big problem for homeowners and it can be a devastating blow to a home sale.

Homes built before the 1980’s in Seattle primarily used concrete sewer lines to run sewage out to the city main line. After main decades these lines are starting to fail. Cracking allows for root intrusion which can clog the line. In some cases the lines are collapsing altogether. 

A lot of home owners do not realize that the sewer line running from their home to the city main line is actually their responsibility to repair. The expense of replacing a sewer line varies greatly from home to home, but a $10,000 price tag wouldn't be uncommon. 

When I work with buyers in West Seattle I advise my clients to have a sewer scope inspection as part of their home inspection. This additional $200-$300 expense can save them $1000’s of dollars and a huge headache. When a major problem is discovered during an inspection some buyers will walk away from the purchase. Others will ask that the seller repair the line before closing. Either way the issue becomes a problem for the seller and not the buyer.

Here is a recent article in the Seattle Times that highlights this budding problem:

West Seattle condo sales followed the same trend here in Seattle as single family residences with an increase in overall units sold over 2014 sales by 3.3%. In 2015, the number of units sold was 272, an increase of only 9 units over 2014 sold number but still significant considering the majority of the country saw a drop in overall unit sales.

The average price of the unit sold in 2015 was $329,151, and increase of $30,375 over 2014 average condo price sold. This a a 10.2% jump in value.

This year, sales volume in West Seattle is expected to remain low as current owners wait for the market conditions to improve some as they are likely buyers too and fear having to compete for a new home along with the rest of the Seattle area buyers.

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 

Here are a few common questions I am asked by buyers I work with in West Seattle, and it doesn’t matter if they are interested in a condo on Alki Beach or a single family home in Fauntleroy.

How much home can I afford? 

This is always one of the first questions buyers have and it one that should be answered really before they start looking at homes. Most buyers have a general idea what they can afford in terms of a monthly payment, but what does that really mean regarding the asking price of a new construction townhouse in North Admiral or a resale in Gatewood? 

My advice is to always start the home buying process talking to a mortgage lender (assuming that you are not paying cash or have a rich relative who is willing to loan you money for nothing.) If you have a preferred lender great, if not I’d be happy to refer you to some that I think do a great job. Home affordability will vary on a lot of things - including income, the amount you have to put down on a home, your credit score, the type of loan program that works best for you, as well as the current interest rate for loan.

At the moment, interest rates are near historic lows but if rates rise even a small difference can make a large impact on the amount you can borrow. A good rule of thumb to remember: a 1% climb in interest rate will reduce your borrowing power by roughly 10%. For example - if you could afford to borrow $400,000 at 3% you probably would only be able to borrow $360,000 if the rate jumped to 4% as the monthly payment would be about the same.

Can I buy a home and sell my current one at the same time?

Yes. In a traditional sense this question was really about “how do I carry two mortgages at once if I can’t sell my current home immediately while I’m purchasing at new one?” Mortgage lenders have special loan programs do just that. Contact your preferred lender for details.

You can also make an offer on a new home with a contingency that you sell your current home within an agreed upon timeframe. If you fail to do so the agreement is terminated. The risk with this type of offer is that the seller usually has the right to continue marketing the home and if they find another acceptable offer they can ask that either one of two things happen; you remove your contingency to sell your home and close on the purchase or back out the transaction so they can move forward with the second offer. If you remove your contingency to sell and move forward to close you can still sell your current home you just will not be able to use it as option to back-out of the transaction should you have a problem selling. 

In today’s fast paced seller’s market here in Seattle, sellers are often receiving multiple offers and in addition to looking for the best offer price a seller typically wants to reduce their risk as much as possible and will likely accept a low risk offer. A contingency on the sale of your current home is a risk to the seller. So how do you get around that? In this market, my advice is to sell your current home first so that is doesn't become part of the deal on your purchase to start with. You may have to move into a temporary housing situation, stay with a relative, or ask the buyer of your current home to allow you to rent-back your home until you secure a new home. The rent-back is something you can negotiate at the time you sell your home. Sometimes buyers will offer free rent just to make the deal work.

Check back soon to find my advice on these questions too:

1. How many homes should I preview before making an offer?

2. What do you think the seller will accept as a fair price for the home?

3. How quickly can the transaction close?

4. How do I know if the home is in good condition? Should I have a home inspection?

5. When can I back out if I change my mind about purchasing?

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

In 2015, Seattle added approximately 22,400 people to a estimated population of 662,400. This is a rate of nearly 1,867 per month or 62 people per day. This is only Seattle proper, many more people are settling in the surrounding areas. 

The question is, where are all those people going to live? Seattle is experiencing one of the tightest home markets in history with few homes available for the surging demand. A balanced real estate market would be a supply of 4-6 months worth of homes for the demand. We are currently around a 1 month supply. 

Puget Sound Business Journal article

Just a reminder to all West Seattle home owners that Washington State now requires that when you sell a home you must have carbon monoxide detectors installed in your home. The code basically states that detectors must be installed according to the manufacturer’s guidelines of the detection unit, so pay attention to the installation instructions as units may vary by manufacturer.  At minimum homes are required to have a carbon monoxide detector outside of all sleeping areas and at least one on each floor of the home. So if there are multiple bedroom areas on a single floor that floor will require more than one unit. All floors, regardless if they have sleeping areas or not, are required to have at least one detector.

Its also a good idea to have carbon monoxide detectors (and smoke alarms) active on your home anyway, so no need to wait unit you have your home for sale.

Remember to check and possibly change out the batteries of carbon monoxide and smoke alarms at least twice a year. A good reminder tip it to do it when we switch on and off of Day Light Savings Time. The local Seattle media usually plays notices to remember to change your clock use it as a reminder to check your batteries too.

When helping sellers prep their West Seattle homes before we list them for sale I always recommended taking a good look at the homes curb appeal. Here is a list of some basic ideas that are quick, simple and cost effective to do. Great curb appeal goes a long way with creating a good first impression both in-person as well as online.

1. Clean Up The Front Yard - a sharp looking front yard really helps your home to standout. Here are a couple of things you can do: trim back all over grown shrubs and bushes; mow and edge the lawn; remove all personal yard characters and small potted plants; coil or remove water hoses from view.
2. Paint Front Door - A newly painted door goes a long way with home buyers. Choose a color that really sets the door off as a focal point but also works well with the color scheme of the home.
3. Power Wash the Drive and Walk-Ways - Over time you don't realize how dirty these pathways get. A clean walkway really stands out to buyers.
4. Paint House Trim and Fascia Boards - If you don't have the budget or time to put a fresh coat of paint on your entire home touching up or repainting the trim and fascia boards can really help to make the front of a home look fresh and newer, especially if your house trim is white.
5. New Mailbox - something this simple makes a difference. If your mailbox sits directly in front of the home and its old, painted or dirty looking try changing it out for a new one. 
6. Hand and Deck Rails - add a fresh coat of paint (or stain) to front entry hand and deck rails. Many buyers will grab ahold of hand rails on stairs. A clean, new look with standout.
7. Front Porch Light - Change out the dated looking front porch light with a new modern light. Try also to stay true to the style of your home.
8. Clean the Front Door - Sweep away all spiderwebs and other dirt from the front door and porch light area. Wash door front door of dirt and grime build up. Change out the kick-plate. 

For most of the country and specifically the Seattle / King County area home sales have been down due to the low inventory level available to home buyers. But here is W. Seattle we actually had an increase in the number of sales for single family residence homes. In 2014, there were 1752 homes sold and 2015 saw sales of 1908. We experienced a growth increase of 8.2% housing units sold.

Buyer demand for housing has definitely pushed the selling prices of homes up again. In West Seattle, the average sales price of single family residences increased from roughly $439,000 to $492,000; an increase of 12.1%. A typical $400,000 home would have measured a $48,400 increase in equality value in one year.

As we roll into 2016, buyer demand is still extremely high and available homes to purchase are still low by historical standards. A 4-6 month supply of homes is considered a balanced market; an ample supply for the demand that all currently active homes would sell in 4-6 months at the current rate of sale. We are still below a one month supply of homes making the current selling conditions very favorable to sellers. This imbalance is considered to continue through out the rest of 2016.

New construction is on the rise throughout the area, but will still lag far behind demand. Most of the imbalanced is caused by home owners not selling as they would typically do for normal life events. This is mainly out of fear of not being able to easily make the purchase they wish to because demand is so high.