Jennifer Valente Real Estate

Thursday, January 29, 2015

Multiple Offers - How to Win

Multiple Offers - How to Win

Since the beginning of the New Year, the market is on fire! If you are one of many buyers in search of your dream home, and you want to know how to beat the competition, then please read these tips.

1. Come in strong... This market will not tolerate games, so it is best to not try to bargain if you are in competition. Come in with your highest and best offer, and with the cleanest and best terms. You could tighten up your timelines by shortening the inspection contingency date for example, and you could also be flexible on when you can close.

2. Write a letter... If the sellers have been living in the house for a while, and you have a sense they have enjoyed living there, you should write a love letter. If this really is the home of your dreams, then the words will truly come naturally. Compliment how the house shows, and what you like about the inside and outside. Make it all about them! And of course share your story and how you see yourself living there.

3. Be aggressive... Something that is common here are "offer review periods." If a listing goes live on Thursday, and the offer review date is Sunday evening, you can make a very strong offer and have it expire that evening. Don't be afraid to make your own review period! Fear of loss is powerful, and often times sellers are afraid to lose a good offer.

4. Pre-inspection... You should not waive the "home inspection contingency" because you never know what could be going on with a house, and when emotions are high it is easy to make irrational decisions. A better strategy is to have the house inspected before you make an offer, but do make sure you get the seller's permission first. There are a lot of real estate transactions that fall apart because of home inspections, so if this contingency is already satisfied upfront, you just gained some serious consideration!

Ultimately, you should give it your best shot so that if you do not get the house you truly desire you know you did everything you could. Don't be greedy! Sometimes the old saying goes "you have to give to get." This actually holds true for both buyers and sellers!

Happy House Hunting in 2015!

Tuesday, December 30, 2014

2015 Market Outlook

2015 Market Outlook

With the year coming to a close, many prospective home buyers and sellers are asking what the landscape will be in our local housing market.

Say good-bye to multiple offers, and hello to a much more balanced market! We are running into an interesting conundrum in that prices have peaked. With housing gains at 20% since the crash, and incomes that have not increased enough since 2011, it is safe to say we have reached the top (for now). Consider this a pause.

Inventory will remain low, and interest rates are very likely to increase, which makes affordability even less. If interest rates reach 5%, many homeowners are likely to renovate their homes rather than move. While we will see less multiple offers, sellers will still do very well because inventory will remain low.

Lenders are still conservative and require hefty down payments from buyers, and low debt to income ratios, which will not allow for anymore sharp price increases. Many first time buyers (who also make up a huge portion of our market) do not have the upfront cash that banks require in order to borrow money.

But wait... If incomes do increase over the next two years (which is still possible), then you can expect another boom in our housing market. Also, we could see a huge amount of Millennial buyers enter the market if lenders loosen up their guidelines. In the meantime, we are heading into a healthy and sustainable real estate market!

Happy New Year, and Happy House Hunting in 2015!

Monday, September 29, 2014

Market Update

The metropolitan Seattle real estate market is one of the nation's top markets, and it continues to grow. Yet, even top markets experience fluctuation. The activity we are experiencing this month is not as busy as the Spring and Summer months, and signs show that the market is starting to cool down.

However, Chinese buyers are still scooping up large amounts of real estate, particularly targeting the luxury market. The New York Times reports that brokers and analysts are estimating that up to 40 percent of $1 million-plus homes which sold on the Eastside are purchased by affluent Chinese buyers.

The "crying wolf" days of rising interest rates are due to be over soon. The Fed is ending quantitative easing, and unless there is another formula to suppress interest rates, you can be certain that rates and the dollar will rise. Quantitative easing is a fancy way of saying that we have interrupted the natural cycle of interest rates fluctuating and adjusting to the market. Once this ends, interest rates will go back to their true levels.

In this economy, Ramblers are still the best investment you can make, and they will continue to hold their value over the long term. Baby Boomers highly desire one level living, and when you combine our general low inventory along with the fact that it is very expensive to build ramblers, you end up with very little supply, and very high demand. Buyers will pay cash, waive appraisal, and inspection contingencies to buy one of these gems.

Ultimately, the Seattle area is an excellent place to invest in real estate. With a strong local economy, and the large amount of people moving here from all over the world, eventually Seattle may be just like the Bay Area.