Guide To Seattle Real Estate

I talk a lot about West Seattle Real Estate, mainly because it’s where I live.  If you live elsewhere in Seattle and would like to look at the Statistics for your area Send an email to JonathanMartin@Windermere.com.  I would be happy to provide them to you.

Taking a look at these two charts we get a glimpse of our market here in West Seattle (98116, 98126, 98136).

Real Estate is a Supply and Demand game.  With an average of 10+ months of “Supply” on the market.  Pricing and Condition is key to selling your home.  Location is definitely also a factor look at 98126. Why are the number of sold listings rising there and dropping in 98116 and 98136.  Speculation leads us to the High Point Development.  With all those brand new homes and the builders ability to lower the prices more than your average cash strapped home owner, thats where the action is.  For the rest of us homeowners, Buyers are waiting out the Real Estate frenzy of the news media.  Closings tend to lag the real decision process by about 30-45 days.  These numbers really reflect the buyers of December rather than the buyers of January and February.

Learn More:

• West Seattle Market Statistics
• Even with all the bad press, Homeowners still think they are in the clear.
• West Seattle Real Estate: Median Price

You almost can’t go more than 15 minutes without a break from the Presidential race to hear about the housing melt down.  Business Week just published another article adding to the confusion.  All to often the statistics don’t match the story.  Headlines read “The market could drop another 20%” then Statistics are given about the percentage of homes bought in the last year that owe more than 80% of the homes value.  The article goes on to say that these people would lose their equity if home prices dropped by 20%.  DUH!

Here in Seattle of the homes bought last year 57% owe more than 80% of the value of the home.  But what does that really mean?  Homes bought last year?  They don’t tell us what the rest of the population owes.  They even have pie charts dividing the country up into broad regions like the WEST and the SOUTH and then tout the polls about what home owners think has happened to their equity.  Ok, lets just take a look at the west.  Compare SoCal with up to a 20% drop in value and Seattle with an almost 4% increase, then lump both of them together into the same statistic.  What do you get? Nothing!  Apples and oranges, literally. 

Real Estate is local!  I am not a Realtor that is going to go on about how “Now is the time to buy!”  Now might be the wrong time for you to buy or sell for that matter.  It might be the right time, depending on your specific situation and location.  Frenzy is what the news media sells.  I am also not saying never to listen to the media, but take it all in with a grain of salt.  What sells, Scary Stories!  The News makes their money selling ads, their fee is based on their readership/viewership.  I am an agent, I am paid at the end of a successful transaction.  Listen to your personal needs.  Educate yourself and choose for yourself. 

Learn More:

• West Seattle Market Statistics
• West Seattle Market Statistics
• West Seattle Real Estate: Median Price

Here we see the Median Price of Listed Homes in West Seattle(98116,09136,98126).

All too often this statistic is used to “gauge” appreciation, it doesn’t tell us appreciation.  It really tells us what West Seattle Sellers think their home is worth.  A “Median” is the point where half of the sample is higher and half is lower.  It is a form of averaging.  It tells us that in July ‘07 half of the sellers in 98116 thought their home was worth over $700,000.  Today half think their home is worth more than $625,000.

In any market it is more important to know what the Buyers think than the Sellers.  Buyers set the “market price” of a home.  Sure, Sellers can wait until, if ever, a buyer offers their price.  But if know one does, is it really the market price.  No, it is just the asking price.

If you are interested in knowing what this means for you or for statistics for somewhere else in Seattle, give me a call (206)579-5605.

Learn More:

• West Seattle Real Estate Market Statistics
• West Seattle Market Statistics
• West Seattle Market Statistics

Sorry, It’s Tuesday and these numbers are from Sunday. I have been swamped the past two weeks. Swamped in a good way though;)

Here we go the last week in action:

Single Family Residential Homes in West Seattle (area 140)
486 Active Listings with a Median Price of $445,000
76 Average Days on Market(DOM)
63 Homes under 300k for First-Time Buyers
27 Pending Listings with an average DOM of 83 and Median Price of $370,000
10 Sold Listings with an average DOM of 44 and a Median Price of $360,000

Wow! Look at the DOM of the Sold Listings. This indicates that the good properties(what is selling) are moving fast, while everything else is just sitting.

Comparing this to our Last report. Keep in mind that our last report consisted of two weeks of data.

Single Family Residential Homes- First Two Weeks of the Year
459 Active Listings with a Median Price of $450,000
76 Average Days on Market(DOM)
55 Homes under 300k for First-Time Buyers
20 Pending Listings with an average DOM of 53 and Median Price of $454,475
25 Sold Listing with an average DOM of 77 and Median Price of $370,000

I will get this all into a graph this weekend so we can track our current market situation.

Learn More:

• West Seattle Market Statistics
• Even with all the bad press, Homeowners still think they are in the clear.
• West Seattle Real Estate: Median Price

Who says you can’t buy a home in West Seattle for under 300K anymore? While I will admit it is tougher for first time buyers to buy a home in Seattle, it isn’t impossible. Here are some Listings under 300k.

West Seattle Real Estate Listings under 250k
West Seattle Real Estate Listings 250k - 300k

Random Posts

• The Benefits of Home Ownership, Part 2
• Real Estate Discounters Value
• When is the Best Time to Buy?

Here are a few real estate articles that I have enjoyed this week:

How living beyond your means is good from America’s Most Opinionated Mortgage Broker.

A good reason to get a Condo Owners Insurance policy by the Boston Real Estate Blog.

Check out where we stand in Seattle Area in this image and article from Behind the Mortgage. One reason to be glad we live in a blue state:)

How to save yourself a little aggravation during your transaction from S-Crow at Seattle Bubble.

Who sets the price? From Real Central VA.

Stay tuned for more.

Random Posts

• The drag of progress.
• Before you negotiate a real estate contract, Know your BATNA!
• Pricing! RIGHT the first time!

A few days ago a first-time buyer posed this question. “When is the best time to buy?” She wanted to know when the housing prices were going to be steady and not in risk of falling. The Seattle Real Estate market has held out so far but no one has a crystal ball. Whenever YOU are ready, is the correct answer. Now there are a few caveats to this answer, of course.

No one can be sure what the market is going to do next. We always hear about the people that “gamed” the real estate market. They were smart and bought at just the right time and made a fortune, Right? What we hear are the anecdotal stories that our friends and connections tell us. Notice that the only stories that people tell are of tragedy or great success. No one talks about everything in-between. Just like the news we only remember the extremes.

It is better to be apart of that in-between realm rather than risk trying to “game” the market and lose. As long as you choose the home you buy wisely, and one that you can afford, you will be just fine. Especially for first-time buyers, buying a home can be a complex and scary process. Buy when you are ready, not when someone tells you that “The market is hot” or “Better move now before you miss out.”

Even a broken clock is right twice a day. The real estate agents that are always saying than “Right now is the best time to Buy or Sell” are just that, a broken clock. They have a 50% chance of being right over the long run. The “Bubble heads” that are always talking about the impending doom of the real estate market, have been talking about the bubble for years. Way before our current expansion. If everyone would have listened when the Bubbles first started talking about the bubble they would have missed out on the great gains in the market.

If you buy or sell when you are ready and make good decisions based on which home you buy or how you present your home when selling, you have a much better chance of being “right.” If you are your own clock, you can be right all day long:)

Learn More:

• West Seattle Market Statistics
• West Seattle Market Statistics
• Negotiate! What are you AFRAID of?

I love sales!  No not the Sleazy Used Car type. Sales, helping clients find what they are looking for. That is what a real estate salesman does. What are your needs and how can my experience and training help you? I read and attend tons of Sales Training, some good some not.

I just came across this great post from Gavin Ingham.  He is a Sales Trainer whose blog I just found about a week ago. While his article is about Selling in a Recession, he gives a great example of what many real estate agents are doing in this slower market.

One of my friends went down to our local real estate agent this week to put his house on the market. He was told that maybe he should wait as he might not get the price he wants right now. They told him the market was quiet and that might not be able to sell the house at all. Better to wait for the market to pick up. I walked past their offices later on that day. They were all sitting, chatting and drinking coffee. They were probably moaning about what a bad year it’s going to be. If I’s have been in that office, I’d have taken my mates house on and I’d have been on the phone drumming up some viewings. 50 calls, 100, calls, 500 calls… Whatever it takes. I’d have found someone.

That is the truth if I ever heard it.  What is your real estate agent willing to do for you?  While yes we all like to build our business on referrals, do we sell homes through referrals? NO! Homes are sold through effective marketing and great follow-up on leads and responses to that marketing. Calling back everyone who calls on the sign or the 20+ web markets the home is advertised on.  With a little effort we can collect the leads that are interested in a home.

Yes we can network with other agents, but that is just part of the game. We have to make the calls, follow-up, beat the pavement, find the buyers.  It’s our Job!  If someone wants to Sell their home, Sell it.  Now I am not saying that as agents we can sell any listing. The home must be priced right and in the right condition.  If a home meets these conditions it will sell in ANY market, with great follow-up and diligence of the agent.

Even an under-priced steal of a deal won’t sell if the agent spends all their time talking with other agents in the break room at the office.  I have never sold a home to another agent and doubt I ever will.  That’s why I try to spend my time away from the office. Whether I am holding Mid-Week Opens or Previewing or in my home office Smiling and Dialing, I am working for my clients.

What are you willing to do for your clients?  If your not an agent, What do you expect your agent to do for you?

Learn More:

• West Seattle Real Estate Market Statistics
• How to increase your Selling Price in 2008
• Pricing! RIGHT the first time!

Well we are two weeks into the new year. What has been going on in our market in the last 13 days?

In West Seattle (MLS area 140)

Single Family Residential Homes
459 Active Listings with a Median Price of $450,000
76 Average Days on Market(DOM)
55 Homes under 300k for First-Time Buyers
20 Pending Listings with an average DOM of 53 and Median Price of $454,475
25 Sold Listing with an average DOM of 77 and Median Price of $370,000

So what does this all mean to you?  The real market movement is in the Pending Listings.  Judging the current market situation is all about the pending listings.  The buyers  are in the 450k realm and are buying homes that are priced and shown well.  When the DOM of the Pending homes and the Active listings are compared we notice a 23 day difference.  Why? What makes these homes standout over the rest? Price and Condition. The homes that are selling in this market present well and are priced right!

The Sold Statistics are also interesting with a median price of $370k.  These homes went under contract in December and Title was just transferred.  Why is the Sold Median so low compared to the Active Median?  Speculation leads us to believe that First-time buyers are more likely to buy a home regardless of season.  Established Families with school aged children moving up to their second home are more likely to buy during the late Spring and Summer months.

How many two week periods like this do we have on the market? 459/20=23 or 10 months.  That is if these two weeks are indicative of the rest, they are not.  The market will pick up as we move away from the holidays.

If you are interested in a Custom Statistical Analysis of your neighborhood send an email to jonathanmartin@windermere.com or drop me a line at 206-579-5605.  I would be happy to take a look at what your local conditions are.

Learn More:

• West Seattle Real Estate: Median Price
• West Seattle Market Statistics
• West Seattle Market Statistics

Well besides the author, you might.  How do you choose who to work with when you decide to buy or sell your next home?  If you already have a relationship with a great real estate agent, stick with ‘em, if not then you are shopping.

The best advice that was ever given to me about choosing service professionals was, “Use a realtor that has something to lose.” Whether it is a reputation or a good relationship, use a person that will have incentive to work hard for you.

“But isn’t the commission enough?”  Simply put, NO! Is money the biggest motivator in your life? Yes, it is important, but not supreme.  Family, relationship, conscience, morality, and piece of mind rank higher for most. 

A good real estate agent is transparent and in business for the long run.By transparent, you know about all of the compensation they are receiving, who pays who.  You know there true philosophy not just what their marketing tells you.  You know more than the show they put on in your living room before they ask you to sign the contract. 

A blog is a great way to see into the soul of an agent.  Is every post a shameless self promotion or are they filled with truly helpful information and heartfelt opinions?

A blog is like a time capsule, it saves everything.  You can look at past conversations and opinions.  What did the agent say about their last client, how hard did they work for them?  What are they doing to get the next? 

Learn More:

• West Seattle Market Statistics
• Even with all the bad press, Homeowners still think they are in the clear.
• West Seattle Real Estate: Median Price