The word is that several recent sellers have received very strong, full price offers on their homes that they have rejected, even after a week of market time. Why? Because the expectation has become that multiple offers are going to happen.
All we read in the news is how Seattle is the Hottest Real Estate Market in the Country which is undoubtedly true. So it is not a wonder that homeowners in Seattle have dollar signs in their eyes and those banking on selling their homes have sky high expectations.
The reality of course is that if you don’t get multiple offers within the first week, or at least first couple weeks, it’s not happening for you. Rejecting a strong buyer with a great offer after a week on the market is usually a mistake.
True that in the past several years sellers have been able to put almost any price tag on their homes and slap a sold sign in the yard the next day…. but there is a change happening guys… I feel the chill in the air and it is not the fall weather.
Reminds us of 2007/2008 when sellers became crazed and believed that the large scale appreciation would continue forever, only to miss that that the market was heading down. They sat there ignoring the trend and they ended up chasing the market to sell for a much lower price in the end.
I am NOT saying that is the case here. (That downturn was fueled by nasty subprime loans and risky speculation by homebuyers and investors. We have a much more stable lending situation now and it will be a long time until we can meet the demand from buyers out there).
Even if sellers might have to adjust their expectations a bit, it is still a sellers’ market and we have no indication that prices are starting to fall. The ‘experts’ predict that the huge price surges are coming to an end and we will have a more normal appreciation of 4% to 6% over the next year. Zillow’s prediction is 5.9% into 2018. For more for what is happening right now in Seattle, the NWMLS does a good job summing up local opinions and statistics.
It is our job at Reside Real Estate Group to be fully aware of the market NOW so that we can be ahead of the media on tracking real estate trends. It is also our job to educate our clients about the current market and set realistic expectations. If you have thought of selling soon please don’t panic! But maybe time to start gathering your thoughts and making the lists for preparing the house so you can catch this market. Let me know if you would like my checklist for ‘preparing to sell a home.’ It is still good and there are still buyers willing to pay big bucks for your place. I’ll let you know if that changes.