Competing in Multiple Offers? Look at Your Bottom Line!

Did you know that 44 percent of home sales involve multiple offers? In fact, buyers working with a Windermere Real Estate broker are 18.4 percent more likely to win the sale in a multiple offer situation.

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Posted on November 7, 2016 at 9:47 pm
Steve Hill and Sandra Brenner | Category: Home Buying, Real Estate, Seattle Real Estate, Seattle WA Real Estate

What You Don’t Need To Hear From Your Listing Broker

0209-KCMYou’ve decided to sell your house. You begin to interview potential real estate agents to help you through the process. You need someone you trust enough to:

  1. Set the market value on possibly the largest asset your family owns (your home)
  2.  
  3. Set the time schedule for the successful liquidation of that asset
  4. Set the fee for the services required to liquidate that asset

An agent must be concerned first and foremost about you and your family in order to garner that degree of trust. Make sure this is the case.

Be careful if the agent you are interviewing begins the interview by:

  • Bragging about their success
  • Bragging about their company’s success

An agent’s success and the success of their company can be important considerations when deciding on the right real estate professional to represent you in the sale of the house.

However, you first need to know that they care about what you need and what you expect from the sale. If the agent is not interested in first establishing your needs, how successful they may seem is much less important.

Look for someone with the ‘heart of a teacher,’ who comes in prepared well enough to explain the current real estate market and patient enough to take the time to show how it may impact the sale of your home.

Not someone only interested in trying to sell you on how great they are.

You have many agents from which to choose. Pick someone who truly cares like Steve and Sandra.

Posted on February 10, 2016 at 8:52 pm
Steve Hill and Sandra Brenner | Category: Real Estate, Seattle Home For Sale, Seattle Homes for Sale, Seattle Real Estate, Seattle WA Homes for Sale, Seattle WA Real Estate

217,726 Reasons to Buy a Seattle Area Home Now!

217,726 Reasons to Buy a Home Now! | Keeping Current MattersThe inaugural Opportunity Cost Report was released recently by realtor.com. The report explained that “with interest rates and home prices expected to climb in the next year, the financial penalties of delaying or forgoing a home purchase in today's market have become very steep”.

The report estimates that, based on today's dollars, the average purchaser would accumulate $217,726 in increased wealth over a 30-year period.

(You can get the projected wealth increase for almost 100 metros here.)

What could this mean to someone sitting on the fence waiting to buy?

Experts believe that both home prices and mortgage interest rates will increase over the next twelve months. Obviously, if this does happen, the monthly cost of a home a year from now will be dramatically higher than it is today. The Opportunity Cost Report breaks down exactly how much a purchaser could lose over increments of one year and three years. Here are the results based on an average purchaser in the U.S. delaying their purchase:

Bottom Line

If you are ready, willing and able to buy a home, waiting doesn't make sense.

When you are ready to jump off the fence, give us a call, text or email and put our experience and negotiating skills to work for you!

Steve Hill and Sandra Brenner
SEATTLE-NORTHWEST
Windermere Real Estate
206-769-9577

stevehill@windermere.com


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Posted on June 10, 2015 at 3:00 pm
Steve Hill and Sandra Brenner | Category: Seattle Home For Sale, Seattle Homes for Sale, Seattle WA Homes for Sale, Seattle WA Real Estate

5 Reasons You Shouldn’t For Sale By Owner Your Seattle WA Area Home

In today's market, with homes selling quickly and prices rising some homeowners might consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers.

Here are five reasons:

1. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies which work for the buyer and will almost always find some problems with the house.
  • The appraiser if there is a question of value

2. Exposure to Prospective Purchasers

Recent studies have shown that 88% of buyers search online for a home. That is in comparison to only 21% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

3. Results Come from the Internet

Where do buyers find the home they actually purchased?

  • 43% on the internet
  • 9% from a yard sign
  • 1% from newspaper

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

4. FSBOing has Become More and More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 9% over the last 20+ years.

5. You Net More Money when Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $208,000 while the typical house sold by an agent sells for $235,000. This doesn’t mean that an agent can get $27,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with us and see what we have to offer.

Steve Hill and Sandra Brenner
SEATTLE-NORTHWEST
Windermere Real Estate

206-769-9577
stevehill@windermere.com
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Posted on June 2, 2015 at 4:06 pm
Steve Hill and Sandra Brenner | Category: Real Estate, Seattle Home For Sale, Seattle Homes for Sale, Seattle WA Homes for Sale, Seattle WA Real Estate

New FICO Scoring for the Scoreless

If you’re in the market for a home, you’re probably in the market for a mortgage. With the exception of all-cash buyers, most buyers will find out soon what their FICO score is and what banks think about it.

The FICO score has a huge impact on whether or not lenders consider you an acceptable credit risk, and yet there are more than 53 million Americans out there who don’t have a credit score at all. This doesn’t mean they’re a bad risk, necessarily… it just means they haven’t used credit cards, held a previous mortgage, or had an auto loan. They may be perfectly responsible financial citizens. So how do they apply for a mortgage?

In an attempt to broaden access, FICO has begin to factor new data sources. Announced in April, 2015, FICO will now include two additional sources: A national utility database, presided over by Equifax, and LexisNexis, which relies on public records.

The idea behind the change is this: First, the timeliness of utility payments can be used as month-to-month evidence of financial health. Second, FICO will be looking at LexisNexis address changes to determine how often people have relocated. In theory, frequent moves may be an indication of increased risk.

Though the impulse may be good, the changes are not without some controversy. Some argue the accuracy of the Equifax database may be a concern. It also adds one more credit reporting database which must be monitored. There’s also a worry that the “frequency of move” may unfairly punish people and provide a disincentive for relocations, downsizing, and upsizing of homes, provided FICO only uses the LexisNexis information in a punitive way.

More details are sure to emerge, but one thing is for sure: The era of Big Data in the cloud will be sure to cast their shadow on the way financial institutions assess risk in the years ahead. One hopes that they ultimately let in more sunshine than shade when it comes to helping buyers attain the dream of homeownership.

Are you ready to explore the dream? Contact us today. We’d be happy to help you navigate the home buying or selling journey.

Steve Hill and Sandra Brenner
SEATTLE-NORTHWEST
Windermere Real Estate

206-769-9577
stevehill@windermere.com
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Posted on May 9, 2015 at 10:16 pm
Steve Hill and Sandra Brenner | Category: Home Buying, Seattle WA Real Estate | Tagged

The $7,866 Mistake and 34 Days Later!

Before I dive into my topic, let me give you a couple of definitions that are pertinent to our conversation:

Active: These are homes available on the NWMLS.

Pending Inspection:  These are homes that are under contract, but contingent upon a buyer’s subjective satisfaction of a  home inspection. A buyer can walk for any reason during this phase of the contract.

Pending: The home is under contract and in the process of closing.

Last month we talked about the benefits of having a home professionally inspected prior to listing it on the open market.  The other day, Steve and I were talking about the cost to home sellers of going Pending Inspection and then back Active on the MLS—meaning  the house failed inspection, or at least that is the perception from buyers and agents. We did a little research to see what the ratio of list price to sold price was for homes that went Pending Inspection at least twice, versus homes that went Pending Inspection or Pending just once.  We’ve always suspected that homes that “failed” inspection most likely will not receive as high of offer the second time around.  Our research shows that assumption is correct.  Homes that went Pending Inspection at least twice, sold on average of 94.6% of the original list price.  Homes that went under contract once sold for an average of 96.32 of the last sales price.  That is a 1.71% difference, which doesn’t sound like a lot, but it adds up. We looked at homes that sold in the last 6 months in Mill Creek.  The average selling price in Mill Creek in that time period was $460K.  If the average home went under contract and failed the inspection, that home owner potentially lost $7,866!  However going under contract twice also added an additional 34 days of market time.  Basically they spent an additional month on the market—an extra month of keeping the house “show ready” at anytime.  That is not fun!

The typical process in a house purchase is an offer contract with an inspection contingency.  During that inspection period the buyer will typically ask for some repairs, try to re-negotiate the purchase price, or worst case scenario exit the contract. For about the last 18 months Steve and I have changed our process so that we can avoid going Pending Inspection for our sellers.  In the past we’ve been successful about 60% of the time. The addition of the pre-listing inspection is an evolution of that original goal to go straight to Pending.  We believe this extra step will help our sellers avoid the pitfalls of a failed inspection on the MLS.

If you are considering selling your home, give us a call, text or email and let us put our knowledge, experience and Ultimate Home Selling System to work for you!

Steve Hill and Sandra Brenner
SEATTLE-NORTHWEST
Windermere Real Estate

206-769-9577
stevehill@windermere.com

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Posted on April 19, 2015 at 2:26 pm
Steve Hill and Sandra Brenner | Category: Mill Creek Real Estate, Mill Creek WA Home for Sale, Seattle WA Real Estate | Tagged

Selling Your Seattle WA Area Home? Price it Right Up Front

Selling Your House? Price it Right Up Front | Keeping Current MattersIn today’s market, where demand is outpacing supply in many regions of the country, pricing a house is one of the biggest challenges real estate professionals face. Sellers often want to price their home higher than recommended, and many agents go along with the idea to keep their clients happy. However, the best agents realize that telling the homeowner the truth is more important than getting the seller to like them.

There is no “later.”

Sellers sometimes think, “If the home doesn’t sell for this price, I can always lower it later.” However, research proves that homes that experience a listing price reduction sit on the market longer, ultimately selling for less than similar homes.

John Knight, recipient of the University Distinguished Faculty Award from the Eberhardt School of Business at the University of the Pacific, actually did research on the cost (in both time and money) to a seller who priced high at the beginning and then lowered the their price. In his article, Listing Price, Time on Market and Ultimate Selling Price published in Real Estate Economics revealed:

“Homes that underwent a price revision sold for less, and the greater the revision, the lower the selling price. Also, the longer the home remains on the market, the lower its ultimate selling price.”

Additionally, the “I’ll lower the price later” approach can paint a negative image in buyers’ minds. Each time a price reduction occurs, buyers can naturally think, “Something must be wrong with that house.” Then when a buyer does make an offer, they low-ball the price because they see the seller as “highly motivated.” Pricing it right from the start eliminates these challenges.

Don’t build “negotiation room” into the price.

Many sellers say that they want to price their home high in order to have “negotiation room.” But, what this actually does is lower the number of potential buyers that see the house. And we know that limiting demand like this will negatively impact the sales price of the house.

Not sure about this? Think of it this way: when a buyer is looking for a home online (as they are doing more and more often), they put in their desired price range. If your seller is looking to sell their house for $400,000, but lists it at $425,000 to build in “negotiation room,” any potential buyers that search in the $350k-$400k range won’t even know your listing is available, let alone come see it!

A better strategy would be to price it properly from the beginning and bring in multiple offers. This forces these buyers to compete against each other for the “right” to purchase your house.

Look at it this way: if you only receive one offer, you are set up in an adversarial position against the prospective buyer. If, however, you have multiple offers, you have two or more buyers fighting to please you. Which will result in a better selling situation?

The Price is Right

Great pricing comes down to truly understanding the real estate dynamics in your neighborhood. Look for an agent that will take the time to simply and effectively explain what is happening in the housing market and how it applies to your home. You need an agent that will tell you what you need to know rather than what you want to hear. This will put you in the best possible position. Check out our Ulimate Home Selling System HERE.

Steve Hill and Sandra Brenner

SEATTLE-NORTHWEST

Windermere Real Estate

206-769-9577

stevehill@windermere.com

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Posted on April 5, 2015 at 11:00 am
Steve Hill and Sandra Brenner | Category: Real Estate, Seattle WA Homes for Sale, Seattle WA Real Estate

All these Seattle WA homes are open Sunday!

Check out all Seattle WA homes open today right HERE!

Tired of losing out in multiple offers? Put us to work for you by using our powerful neighborhood knowledge and negotiating skills and get the Seattle WA home you deserve.

Call, text or email us today!

 

Steve Hill and Sandra Brenner

SEATTLE-NORTHWEST

Windermere Real Estate

206-769-9577

stevehill@windermere.com



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Posted on April 5, 2015 at 9:05 am
Steve Hill and Sandra Brenner | Category: Buying a Seattle WA Home, Seattle Home For Sale, Seattle Homes for Sale, Seattle Real Estate, Seattle WA Homes for Sale, Seattle WA Real Estate

Saturday Open House

Check out all homes open today right HERE!

Tired of losing out in multiple offers? Put us to work for you by using our powerful neighborhood knowledge and negotiating skills and get the Seattle WA home you deserve.

Call, text or email us today!

 

 

Steve Hill and Sandra Brenner
SEATTLE-NORTHWEST
Windermere Real Estate

206-769-9577
stevehill@windermere.com

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Posted on April 4, 2015 at 9:50 am
Steve Hill and Sandra Brenner | Category: Home Buying, Seattle Home For Sale, Seattle Real Estate, Seattle WA Real Estate

Industry experts agree: Seattle WA housing supply is too low

Industry Experts Agree: Housing Supply Too Low | Keeping Current Matters

Last week, we reported on the lack of housing supply and how that was impacting the real estate market. Today, we want to let you know what other industry experts are saying.

Daren Blomquist, RealtyTrac Vice President:

“It’s kind of a seesaw right now between supply and demand. One of the reasons for fewer sales is not so much a lack of demand but a lack of supply, especially in the price range the majority of buyers were looking for.”

Diana Olick, CNBC’s Realty Check:

“Total sales are still running below expectations for the year. Don't blame winter weather, though. Blame the lack of supply.”

Bill McBride, Founder of Calculated Risk:

“Inventory is still very low (down 0.5% year-over-year in February). This will be important to watch over the next month at the start of the spring buying season.”

Lawrence Yun, Chief Economist at the National Association of Realtors:

“Insufficient supply appears to be hampering prospective buyers in several areas of the country and is hiking prices to near unsuitable levels. Stronger price growth is a boon for homeowners looking to build additional equity.”

Realtor.com

“The National Housing Trend Report shows that inventory has decreased 10.9 percent year over year.”

And some experts are actually calling it a “seller’s market”

Forbes.com

“Tight inventory is a main reason the ball is still in the sellers' court.”

Bill Banfield, VP of Quicken Loans:

“We’re a bit low on the supply-side which could force prices up for buyers, further hammering home that we’re in a seller’s market.”

Bottom Line

If you are debating putting your home on the market this year, now may be the time. The number of buyers ready and willing to make a purchase is at the highest level in years. Contact us today to get the process started!

Steve Hill and Sandra Brenner
SEATTLE-NORTHWEST
Windermere Real Estate

206-769-9577
stevehill@windermere.com

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Posted on April 3, 2015 at 3:05 pm
Steve Hill and Sandra Brenner | Category: Seattle Home For Sale, Seattle WA Homes for Sale, Seattle WA Real Estate

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