Tales from the Trenches
UBL Housing Market Reflection
As we reflect on January 2017, we see a major increase in buyer activity and the biggest inventory shortage in over 20 years. It is not unusual for sellers in today’s market to receive up to 10 (sometimes 20) different offers. To be more competitive, buyers are waiving many contingencies and are bidding 5-20% over the asking price. This is common not only in Bellevue, but in all areas around the Seattle area.
Just this week, Don and Julie were involved in a transaction where their buyer was in a bidding war with 12 other bidders (925k price range). Due to competition, bidding escalated to 1.1 million and the winning bidder waived all contingencies. While that bidder did not pay cash, there was no inspection, no financing contingency, and the buyer even agreed to cover any amount of shortfall from the lender’s appraisal.
Alternatively, Don and Julie were able to negotiate a 5-month leaseback for their most recent seller. The buyer for this transaction was so determined to buy the high-rise condo, that she was willing to allow the seller to remain in their home until the start of the summer. This just goes to show the lengths buyers are willing to go to accommodate the seller in this market.
What does this mean for potential sellers? Now is the time to sell. As a seller, you are more than likely to receive multiple offers that will escalate way over the asking price.
What about buyers? Buyers need excellent representation from highly skill and well-connected brokers. Don and Julie know this market and have many connections. They have strategic plans and know how to set up searches that will allow you to look at all possibilities under your specific criteria. Prices and rates are expected to climb by the end of the year. Simple supply and demand tells us that buying sooner rather than later will lock in a lower housing cost for you in the long run.
Contact us today for more information on how to navigate through this crazy market!