Winter is a relatively slower time for the real estate market, with the key word being “”Hot neighborhoods like Ballard remain HOT, and winter may mean that a seller only gets 15 offers instead of. We had a buyer competed with 43 others for a Ballard townhouse that was listed in early December. We had another buyer compete for a 1 bedroom condo in Ballard this week where the highest offer came in at nearly $100,000 more than a similarly-sized unit in the same building that sold just this past Fall! And it was cash! We are often asked by buyers what a property is worth and how much they should pay for it. Our answer necessitates defining the concept of “market price,” which is what a willing buyer will pay (that we assume will be acceptable to a seller). For example, data from recent sales, county records, etc may show that a particular property should be priced around $500,000. However, a range of factors such as emotional appeal (the porch reminds the buyers of their beloved childhood home), market economics (low supply, high demand), unique features (sweeping water views, high-end upgrades) may mean that buyers are willing to pay up to $650,000 for the house. This is an important concept that we try to remind all of our clients about. We may be able to use data to show that the house is “worth” $500,000, but using our experience and intuition, we will tell you that you may need to pay much more to buy it. Some buyers have asked if such occurrences are creating another pricing bubble and all we can say is that there is no shortage of ready, willing and able buyers looking for good properties to buy. The alternative for many is to continue renting, but rents have increased a lot, too. We think that as the job outlook, economic conditions and net migration to this region remain positive, so too will the housing market.
© Rich Tao Real Estate - since 2003
