Seattle's I Got Smart Real Estate Podcast with Josh Pemberton

Today I’m going to be giving you a real estate market update for the Puget Sound area. I have a few concerns about the market and I will be addressing them here.

You need to understand that at this time last year, the average sale price in Puget sound was $521,000. This year it is now $615,000. That is 14% appreciation in one year! That’s almost unheard of. That’s a change of $236 per sq. ft. and now we’re closer to $270.

These multiple offer situations are driving home prices through the roof. When cash buyers come in, they don’t need to get an appraisal done on the home, so the appraisers have no chance to value the home. This is causing home values to rise unchecked. Foreign investors are also bringing in a lot of money to the area, and these people often have deep pockets.

Appraisals keep checks and balances on the real estate market, so how are we going to handle this problem?

If you’re a buyer, please understand that this is normal. We’re seeing levels rise to where they were at the peak of the market, so you’re not getting ripped off. However, be wary when you’re fighting 15 other people for a home and the price escalates rapidly. What I suggest you do is look at homes that have been on the market for 2-3 weeks. There will be less competition from buyers and these homes will be more affordable. Just make sure that they’re in good condition.

If you have any further questions, please don’t hesitate to contact me!

What are we seeing in the Seattle real estate market? We're seeing a lot of low inventory and pending sales are dropping. There simply isn't enough out there for people to buy, so if you have been thinking about listing your home for sale, now would be the time to do so.

If you put your home on the market right now and it's in good condition and priced well, you can expect it to sell quickly and for top dollar. With interest rates rising we're expecting a lot of demand for homes in 2016, so please speak with us soon if you'd like to sell.

In other news, I have a unique opportunity for you if you like rock music. I recently did some work with Susan Tate, the wife of Jeff Tate from the band Operation: Mindcrime. Jeff is a wonderful client and we've sold him and his family a lot of homes, but his newest band, Operation: Mindcrime, is loaded with talent. Their bassist John Moyer has played with Disturbed. The drummer, Simon Wright, has played with AC/DC and DIO. Brian Tichy is another drummer, and he has played for Ozzy Osbourne, Billy Idol, and Foreigner.

The big news is that they have a concert coming up on March 18th at the Neptune Theatre, Seattle. I have some backstage passes that I'm willing to part with if you want them. We're actually going to be giving away two backstage passes for the first people that call and ask about them.

If you plan on going to this concert please let us know, we can get you backstage passes for no extra charge!

Please don't hesitate to contact me with any questions or concerns you may have!

Let's discuss multiple offers. If you're a seller with multiple offers on your home, you're in a great place. However, buyers should expect to compete with ten other people for a home.

Multiple offers have slowed down substantially in the Puget Sound area. Previously, if you were a buyer, you had a 95% chance of ending up in a multiple offer situation. Now, those odds have dropped to a 35% to 40% chance of being in a bidding war, depending on your area.

So, if you're a buyer, how do you win in a multiple offer situation? Pay attention to the sales price. Think like a seller. In today's market, sellers get their asking price or higher. In a multiple offer situation, homes can sell anywhere between 3% and 15% above the asking price.

Additionally, don't look for homes at your maximum sales price. For instance, if you qualify to buy a $600,000 home, look at homes for $550,000. That way you have a buffer if you do need to win a bidding war based on sales price. Know and understand your budget.

You can avoid being caught in multiple offers if you bid on a house that has been on the market for two weekends or more. That's when the hot period has passed, and you could get the home for the asking price or below.

There are more strategies for you to win in a multiple offer situation. We will cover those in upcoming videos. Stay tuned! If you have any questions, give us a call or send us an email. We would be happy to help you.

Hi, everyone! Today, we’ll discuss market conditions in the Seattle area.

In September, the average asking price was $633,000 in Seattle; $230,000 in Tacoma; $342,000 in Everett; and $953,000 in Bellevue. Likewise, the average sold price was $646,000 in Seattle; $228,000 in Tacoma; $335,000 in Everett; and $953,000 in Bellevue. It is still a seller’s market, but it’s slowing down!

The number one reason why people don’t move to Western Washington is the home price. However, there is an exception: high-tech industry home buyers find Seattle very affordable.

The average time it took to sell in Seattle took 23 days; in Tacoma took 46 days; in Everett took 32 days; and in Bellevue took 25 days. On average, people live in their homes five to seven years before moving.

If you have any questions about what these numbers mean for you, please don't hesitate to reach out to us. We're always here to be your real estate resource!

Buying a home is a serious step. One

common mistake buyers and sellers make is not being emotionally prepared to

make an offer on a home.

Some buyers can spend a couple of years getting their finances

in order. Then they get their loan approved and look at homes with a real

estate agent. Finally, they find the house of their dreams, and what happens?

They want to sleep on it, or pray on it, or get a family member's opinion

before they make on offer.

The reality is that in this market, if you snooze, you lose. Correctly priced properties are just flying

off the market. You have to be emotionally prepared to make that decision and

make an offer. Look at homes on Tuesdays, Wednesdays and Thursdays if you are

ready to make an offer. Weekends are the worst time to make an offer because a

lot of other buyers are out there and you are almost guaranteed to wind up in a

multiple offer situation.

If you have any questions, please do not hesitate to reach out

to me. I would be happy to help you.

What are real estate conditions in Seattle like right now? Many folks in our area are curious about whether now is the time to buy and whether conditions are favorable for a successful home sale.

There are ten key mistakes that buyers in our area make all the time, but right now the number one mistake buyers make is waiting to make their move. There are several reasons why:

Think about current conditions this way: a 1% increase in interest rates means the amount of home you can purchase just went down by 10%. For example, if you were qualified to buy a $400,000 home, but rates jumped by 1% before you found a home, you would only be able to afford a $360,000 home!

The most deadly mistake that buyers are making right now is that they're waiting to buy. We don't want you to do the same! Give us a call or shoot us an email with any of your questions and concerns about our current market. We would love to hear from you!

Today's topic is siding, a very important part of the exterior of your home that can hurt your chances of selling.

Here in the Pacific Northwest we have had problems with a certain type of oriented strand board or LP siding. Essentially, this siding is made of a pressed, wood-like material with an exact pattern. It's not like the cedar siding you'll see on some homes where the patterns differ.

Because it's so moist here in the Pacific Northwest, this siding will start to wear if you don't keep it painted. If this type of siding isn't kept up, it starts to rot and will need to be replaced. When you're looking at homes, you want to take a look at the bottom of the boards to ensure that moisture isn't being absorbed and rotting the siding.

When siding begins to rot, moisture then gets between your exterior wall and your interior wall and gets on your insulation. This can result in black mold, which is a huge pain to deal with and can even be dangerous!

One of the best places to look around the exterior of a home is where the exterior of the fireplace is. Those areas tend to rot the most and the fastest. If you view a home that has rot occurring, you want to be very careful. Replacing LP siding can be very expensive, costing you tens of thousands of dollars.

So, if you're looking at homes with LP siding, be sure to call a professional to take a look at it. If you're selling your home, you probably want to do the same, as rotting siding may be a great way to scare buyers away.

If you need real estate assistance of any kind, give us a call or shoot us a quick email. We would love to help you out!