Here is what’s happening in the market ]
With all the real estate headlines in the news, most likely you’ve read about overheated buyer demand and low inventory. You may recall this trend was also articulated in Mike’s 2017 Forecast.
I wanted to share this story so people you know can benefit-
Working with my Bellevue sellers we listed this cutie rambler in the Foxglen community of Bellevue on March 23rd. Open houses Friday-Sunday, over 200 people, 83 agents and the most viewed home online that weekend (according to Zillow). Set up from the beginning with “buyer desire” home positioning and multiple offer process we listed for $630,000. Receiving 37 offers, the sellers were in contract on the 30th and closed on April 7th for $802,000! That is 27% over list price and $102,000 more than many expected. That is also $517 per square foot. We may have set a new mark in East Bellevue as the average was $380/ft when we started the upgrades.
The backend story is that after working with lots of buyers over these past several years looking at old homes built in the 50’s and 60’s, the sellers and myself created an excellent situation by renewing the home, opening up walls, installing new roofs and windows and many other items most buyers can’t or don’t want to do. A great family will now call this cutie rambler home.
The market rewarded these sellers and the whole experience exceeded expectations of everyone involved. This wasn’t a coincidence. This was incidental. Sure many of the homes and condos have been selling but not 27% over list.
I don’t expect these close-in markets to appreciate at this clip forever. That is unsustainable. But for the next several months I believe you or those you know can sell for 15-25% more than just a few short months ago.
I thought you would want to know about this right now.
I will show you how we did this.
Here is an abstract of my forecast on 2017 real estate market:
A record low number of houses for sale in December indicates that 2017 will continue to be a very competitive market for buyers. The good news: those who decide to take the plunge and list their home can count on getting a premium price for their property. Brokers reported that about three-fourths of the homes sold in December involved bidding wars. That leaves an ever-rising population to compete over the same stock of houses, driving prices even higher.
Condo values have finally reached and surpassed the 2007 peak so getting your “dream price” may be here.
Buyers spooked by a spike in mortgage interest rates gave rise to the busiest November for homes sales in over a decade. Prices rose accordingly. Case-Schiller ranked the area as the housing market with the fastest rising prices in the country.
Sellers can expect to get a premium for their homes as we move into 2017, BUT they need to consider how an expected further increase in interest rates may impact the market later in the year.
Click Here for the full report…
Many buyers have been coming to me over these past few months looking to buy lower priced condos and homes around Puget Sound. With today's low interest rates or line of equity cash purchases this is a great investment for you and a safe and friendly environment for your kids.
Many of the jobs for younger employees are near the urban hubs of Bellevue, Kirkland and Seattle. Although there are plenty of apartments to choose from, they can costs thousands to rent. I am sure you can find plenty of financial calculators like investment calculators on the iPhone and don't need my help understanding the numbers of buy vs rent. What has been the bigger concern is the risk of "what happens if she moves" . The key is to buy one of the chosen few in type and location. It will make it easier for you to keep the property rented or retain better odds of selling success and that investment gain.
In some geographies, in some price ranges with certain amenities getting a condo may not only be the right choice, it may be the only one. In similar price ranges and geographies especially with kids, a house may be essential but to an ever-growing range of demographics, that isn’t a requirement.
Owning a home has costs that may equate to the same or more as the condo dues you are wondering about. Insurance, water, sewer, garbage, maintenance, upgrades, roofs, cleaning, lawn care, etc, etc., all adds up easily to several hundred dollars per month. These costs are not a part of the mortgage and are not tax deductable. Buying a condo in a development that has already conducted all the upgrades and doesn’t have upcoming assessments for the next several years may actually be a very suitable alternative and allow the buyer to live and work in the area they want. HOA dues may initially appear to reduce what the buyer can qualify for but the yearly cash outlay may be quite similar to a home.
In some cases recently constructed condo buildings have what seem to be quite high dues per square foot and the buyer may be helping pay for what is an expensive design and expensive to manage property.
Other condo buildings that have been well maintained and/or upgraded with many amenities like trails, pools, grounds, walk ability, large square footage and low maintenance may initially deter the buyer offer but upon deeper research the buyer often finds the true cost is worth it considering what the condo is, where it is located and what the future holds for the neighborhood.
Lake Bellevue Village is a prime example.
The dues seem to be perhaps $150/month higher than other condos, however LBV has a long list of supportive elements that make the cost a wash with many alternatives.