In a recent feature article, the Wall Street Journal says “with high home prices, low inventory and heated bidding wars, Seattle is the new San Francisco.” While median home prices in the Seattle area have not yet hit peaks as Californians find in San Francisco, there are parallels, as “buyers in both cities – many in the tech industry – are competing for a limited pool of properties.”
As Lawrence Yun, chief economist for the National Association of Realtors says in the feature, “Seattle has one of the strongest home markets . . . with several consecutive years of solid price appreciation,” continuing that “not only technology workers but also companies are moving to Seattle.”
The article also provides a list of top considerations for buyers in Seattle:
- Bigger down payments: as the feature describes, “accelerating home prices are creating more appraisal challenges in the Seattle area, where about 15% of SoFi’s recent loans appraised lower than the sale price due to lack of availability of comparable recent sales” which means that some borrowers may need to offset the difference by increasing their down payment.
- Pre-inspections: “because of the fiercely competitive market, sellers expect buyers to bid quickly and waive the home-inspection contingency,” making pre-inspections part of the norm.
- Negotiation: “some determined buyers will employ aggressive tactics to get a seller to pick them,” which includes “upping the nonrefundable earnest money (usually 1% to 2% of sales price) to as much as $50,000 to $100,000 on a $500,000 to $800,000 home.”
Given Seattle’s increasing home prices, the debut of NEXUS has never been more timely, with pre-sales scheduled to begin June 4th. Learn More >>