Tips for First Time Homebuyers

A recent article by My Northwest describes 5 things buyers do that can cause agents distress and strain the client/realtor relationship:

1. Try and see beyond the current look of the home. As the article describes, "real estate professionals say they wish more clients could get past the aesthetics of the house, especially since so many of the items that bother them are easily fixable."
2. Focus on more than just finances. Sure, it's important to be prepared to purchase, but it is also key to remember that "it's not necessarily the highest offer that the seller will accept, but rather the best structured offer combining timing, price and reasonable contingencies." That is why it is key to have an agent who is on your side and can allow you to make informed decisions regarding all aspects of the transaction.
3. In this fast-paced real estate market, timing can be everything and you won't always have a substantial amount of time to commit to a decision. "If too much time passes between a buyer viewing a home and making an offer, the seller might not take another party who quickly expressed interest and maintained communication."
4. Do not talk to the listing agent without your realtor by your side. As the article says, "the listing agent is there to get the most money for the seller, not save the buyer money," which is why you need your own advocate throughout the process.
5. When making a counter offer, don't "lowball" - going back and forth can be a frustrating process for agents and more often than not, is counterproductive as it offends the seller(s).

The Puget Sound Business Journal Reports an Increase in All-Cash Buyers in Seattle Area

Cites Realogics Sotheby's International Realty Research

In an article from Janaury 22nd, Marc Stiles of The Puget Sound Business Journal reports that, “All-cash buyers dominate region’s luxury home market,” as “nearly two-thirds of the people who bought high-end homes last year in the Seattle area paid cash.” In the feature, Stiles citesRealogics Sotheby’s International Realty (RSIR) research which found that the most expensive sale of 2015 was a waterfront estate on Mercer Island at $13.8 million.

Stiles likewise describes that in these cash deals, “thirty-nine percent of the buyers were from overseas, primarily China.” This finding aligns with a recent article in The Seattle Times that included RSIR’s market research and found that luxury sales have increased in the area thanks to the presence of tech executives and foreign buyers. Of particular interest was that RSIR found that the distinctive waterfront neighborhood of Newport Shores in Bellevue attracted 13 sales during the past two years that exceeded $3 million and 86% of the surnames on these newly recorded titles appear to be on Mainland Chinese origin. There were no such sales in 2011, 2012 or 2013.

In response to this steady rise of Chinese nationals arriving to the Seattle/Bellevue metro area, RSIR and Tiger Oak Publications recently released a 92-page, all-Mandarin magazine called Seattle Luxury Living, which generated a front-page article in the Seattle Times and was a featured story on the Perspectives blog by Sotheby’s International Realty®.

This recent slough of news pieces also comes on the heels of Palace Magazine’s recently published special report that added Seattle to its list of top markets sought by Asian homebuyers. “We are proud to represent our region within this elite publication and be included amongst our peer markets,” said Dean Jones, President and CEO of RSIR. “There is now little doubt that Seattle is on the map overseas and I believe this wave of foreign direct investment is just getting started.”

Seattle is 7th Hottest Millennial City

What are the hottest cities for Millennials to buy homes in for 2016? A recent Realtor.com article outlines, "Where's Hot - and Where's Not - For Home-Buying Millennials" in the coming year. As Yuqing Pan writes millennials are making their presence known in the housing market: "numbering 43.5 million, the older group of millennials (aged 25 to 34) makes up 13.6% of the U.S. population but fully 30% of the current population of existing-home buyers."

Rather than try to move to "trendy" cities with high price tags such as New York City and Los Angeles, "young home buyers are increasingly turning to cities that are relatively affordable and have lots of jobs and maybe even a trendy atmosphere all their own." And one of those more affordable cities for 2016 is likely to be Seattle.

With a median listing price of $398,000 and a 14.9% population share of older millennials, Realtor.com places Seattle 7th on their list of 10 cities, writing that "the headquarters of Microsoft, amazon, and many other tech companies large and small" mean that there has been "an influx of educated, young tech workers, which contributes to its uniquely cool culture." And of course, don't forget about Starbucks of course!