Adventures in a Changing Market

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West Seattle Market Statistics
2008-02-07 01:22:00
I talk a lot about West Seattle Real Estate, mainly because it’s where I live.  If you live elsewhere in Seattle and would like to look at the Statistics for your area Send an email to JonathanMartin@Windermere.com.  I would be happy to provide them to you. Taking a look at these two charts we get a glimpse of our market here in West Seattle (98116, 98126, 98136). Real Estate is a Supply and Demand game.  With an average of 10+ months of “Supply” on the market.  Pricing and Condition is key to selling your home.  Location is definitely also a factor look at 98126. Why are the number of sold listings rising there and dropping in 98116 and 98136.  Speculation leads us to the High Point Development.  With all those brand new homes and the builders ability to lower the prices more than your average cash strapped home owner, thats where the action is.  For the rest of us homeowners, Buyers are waiting out the Real Estate frenzy of the news media.  Closings te...
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Even with all the bad press, Homeowners still think they are in the clear.
2008-02-05 00:46:00
You almost can’t go more than 15 minutes without a break from the Presidential race to hear about the housing melt down.  Business Week just published another article adding to the confusion.  All to often the statistics don’t match the story.  Headlines read “The market could drop another 20%” then Statistics are given about the percentage of homes bought in the last year that owe more than 80% of the homes value.  The article goes on to say that these people would lose their equity if home prices dropped by 20%.  DUH! Here in Seattle of the homes bought last year 57% owe more than 80% of the value of the home.  But what does that really mean?  Homes bought last year?  They don’t tell us what the rest of the population owes.  They even have pie charts dividing the country up into broad regions like the WEST and the SOUTH and then tout the polls about what home owners think has happened to their equity.  Ok, lets just take a look at the west.Â...
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West Seattle Real Estate: Median Price
2008-01-30 00:04:00
Here we see the Median Price of Listed Homes in West Seattle (98116,09136,98126). All too often this statistic is used to “gauge” appreciation, it doesn’t tell us appreciation.  It really tells us what West Seattle Sellers think their home is worth.  A “Median” is the point where half of the sample is higher and half is lower.  It is a form of averaging.  It tells us that in July ‘07 half of the sellers in 98116 thought their home was worth over $700,000.  Today half think their home is worth more than $625,000. In any market it is more important to know what the Buyers think than the Sellers.  Buyers set the “market price” of a home.  Sure, Sellers can wait until, if ever, a buyer offers their price.  But if know one does, is it really the market price.  No, it is just the asking price. If you are interested in knowing what this means for you or for statistics for somewhere else in Seattle, give me a call (206)579-5605. Learn...
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West Seattle Market Statistics
2008-01-22 15:38:00
Sorry, It’s Tuesday and these numbers are from Sunday. I have been swamped the past two weeks. Swamped in a good way though;) Here we go the last week in action: Single Family Residential Homes in West Seattle (area 140) 486 Active Listings with a Median Price of $445,000 76 Average Days on Market (DOM) 63 Homes under 300k for First-Time Buyers 27 Pending Listings with an average DOM of 83 and Median Price of $370,000 10 Sold Listings with an average DOM of 44 and a Median Price of $360,000 Wow! Look at the DOM of the Sold Listings. This indicates that the good properties(what is selling) are moving fast, while everything else is just sitting. Comparing this to our Last report. Keep in mind that our last report consisted of two weeks of data. Single Family Residential Homes- First Two Weeks of the Year 459 Active Listings with a Median Price of $450,000 76 Average Days on Market(DOM) 55 Homes under 300k for First-Time Buyers 20 Pending Listings with an average DOM of 53 an...
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West Seattle Real Estate Listings under 300k
2008-01-17 02:07:00
Who says you can’t buy a home in West Seattle for under 300K anymore? While I will admit it is tougher for first time buyers to buy a home in Seattle, it isn’t impossible. Here are some Listings under 300k. West Seattle Real Estate Listings under 250k West Seattle Real Estate Listings 250k - 300k Random PostsWell it is time for a few New Year resolutions.Real Estate Link RollWest Seattle Junction Plaza Park

Real Estate Link Roll
2008-01-16 02:25:00
Here are a few real estate articles that I have enjoyed this week: How living beyond your means is good from America’s Most Opinionated Mortgage Broker. A good reason to get a Condo Owners Insurance policy by the Boston Real Estate Blog. Check out where we stand in Seattle Area in this image and article from Behind the Mortgage. One reason to be glad we live in a blue state:) How to save yourself a little aggravation during your transaction from S-Crow at Seattle Bubble. Who sets the price? From Real Central VA. Stay tuned for more. Random PostsWhy you should NEVER call the sign in the Yard? Part OneRSS Feed ReaderWhy you should NEVER call the sign in the yard! Part Two
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When is the Best Time to Buy?
2008-01-14 21:23:00
A few days ago a first-time buyer posed this question. “When is the best time to buy?” She wanted to know when the housing prices were going to be steady and not in risk of falling. The Seattle Real Estate market has held out so far but no one has a crystal ball. Whenever YOU are ready, is the correct answer. Now there are a few caveats to this answer, of course. No one can be sure what the market is going to do next. We always hear about the people that “gamed” the real estate market. They were smart and bought at just the right time and made a fortune, Right? What we hear are the anecdotal stories that our friends and connections tell us. Notice that the only stories that people tell are of tragedy or great success. No one talks about everything in-between. Just like the news we only remember the extremes. It is better to be apart of that in-between realm rather than risk trying to “game” the market and lose. As long as you choose the...
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Real Estate is Sales!
2008-01-14 13:22:00
I love sales!  No not the Sleazy Used Car type. Sales , helping clients find what they are looking for. That is what a real estate salesman does. What are your needs and how can my experience and training help you? I read and attend tons of Sales Training, some good some not. I just came across this great post from Gavin Ingham.  He is a Sales Trainer whose blog I just found about a week ago. While his article is about Selling in a Recession, he gives a great example of what many real estate agents are doing in this slower market. One of my friends went down to our local real estate agent this week to put his house on the market. He was told that maybe he should wait as he might not get the price he wants right now. They told him the market was quiet and that might not be able to sell the house at all. Better to wait for the market to pick up. I walked past their offices later on that day. They were all sitting, chatting and drinking coffee. They were probably moaning about what a ...
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West Seattle Real Estate Market Statistics
2008-01-13 20:34:00
Well we are two weeks into the new year. What has been going on in our market in the last 13 days? In West Seattle (MLS area 140) Single Family Residential Homes 459 Active Listings with a Median Price of $450,000 76 Average Days on Market (DOM) 55 Homes under 300k for First-Time Buyers 20 Pending Listings with an average DOM of 53 and Median Price of $454,475 25 Sold Listing with an average DOM of 77 and Median Price of $370,000 So what does this all mean to you?  The real market movement is in the Pending Listings.  Judging the current market situation is all about the pending listings.  The buyers  are in the 450k realm and are buying homes that are priced and shown well.  When the DOM of the Pending homes and the Active listings are compared we notice a 23 day difference.  Why? What makes these homes standout over the rest? Price and Condition. The homes that are selling in this market present well and are priced right! The Sold Statistics are also interesting with a median...
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Who cares about a real estate blog?
2008-01-13 15:47:00
Well besides the author, you might.  How do you choose who to work with when you decide to buy or sell your next home?  If you already have a relationship with a great real estate agent, stick with ‘em, if not then you are shopping.  The best advice that was ever given to me about choosing service professionals was, “Use a realtor that has something to lose.” Whether it is a reputation or a good relationship, use a person that will have incentive to work hard for you. “But isn’t the commission enough?”  Simply put, NO! Is money the biggest motivator in your life? Yes, it is important, but not supreme.  Family, relationship, conscience, morality, and piece of mind rank higher for most.  A good real estate agent is transparent and in business for the long run.By transparent, you know about all of the compensation they are receiving, who pays who.  You know there true philosophy not just what their marketing tells you.  You know more than ...
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The drag of progress.
2008-01-11 23:11:00
I just finished a Competitive Market Analysis for a client.  They live next to a large construction project.  By large I mean a 6 story retail/condo complex.  The noise starts promptly at 7am and doesn’t end until 5pm.  How does this affect the price we set on their home? Well it isn’t good.  Most often people are “now” centered. If it is noisy now it will be noisy later. They have a hard time seeing into the future and what it will be like when the noise is gone.  But how do we judge by how much the price needs to change to entice a buyer to sign?  This is a difficult question, we could look and see how other construction sites have impacted home sales.  But most sites are different and it really depends on the buyer rather than the environment.  This is a challenge but not impossible.  One method would be to peg the price at a level under the comparable competition, this would normally put the home in the first position to sell.  How much to peg ...
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How to increase your Selling Price in 2008
2008-01-07 22:08:00
Are you planning on Selling your Seattle Home this spring?  If you are then there are a few things that you should begin, before you put your home on the market.  Preparing a home for sale during the winter in Seattle can be a test of will as you are forced to brave the elements.  Focus on the touch-ups that are inside and leave the outside ones for later in the spring. The biggest bang for the buck can be: Painting the Interior.  A fresh coat of light neutral colored paint will provide your home with an inviting and refreshing appeal when your prospective buyers walk through the door this spring.  Make sure that you are careful around the baseboards, nothing screams corner cutting than paint splatter on the baseboards.  If you have the know how(it’s not too hard) remove the baseboards and replace them after you are finished painting. Who is going to spend a half a million on a Seattle home without Granite.  While to some this seems like a trend, it isn’t. With th...
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Real Estate Discounters Value
2008-01-06 22:32:00
After reading this great article by a Broker in Florida, inspiration hit.  I agree with Bryant, that ABM’s or Discounters have a place in real estate.  Commissions are always negotiable, everything is, and you don’t always get what you pay for.  Having had the unfortunate experience of paying for more than I got, just because an agency  charges full commission doesn’t mean they offer better service. But lets look at what they advertise as there best quality. I work under the Windermere brand, our company focuses on service and a “Nordstroms” like care of our clients. We are the Cadillac of real estate companies in the Seattle Area, and that is what we advertise: Care, Service, Relationship, Quality, Expertise, and Great People. We are putting our best foot forward. What do the Discounters advertise: One says that, “They put you in charge of selling your home.”  Why are you hiring them then?  Aren’t they getting paid to sell you h...
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Are Real Estate Negotiations Zero Sum?
2008-01-06 02:16:00
After reading a great post by Charles over at Portland Real Estate Blog,  a little could be added to our discussion about real estate negotiations. Is it always a Zero Sum Game? One of the first principles learned when studying negotiation tactics, is to make sure to leave your opponent feeling like they got a good deal.  This can be tough especially when using terms like opponent and zero sum. Homeowners hire agents to play this game tough and get the best possible price for their home. This is zero sum, what one side wins the other loses. But while our goal as agents is to get the best possible deal for our clients, we must remember that there are people on the other side of the transaction.  Now we’re not talking about being easy on the other side. But, I have come very close to losing transactions because the agent on the other side of the deal was demanding the world, rudely. My clients felt insulted by the underlying tone that was coming across during the negotiations...
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Reasons for being a Real Estate Agent
2008-01-03 02:31:00
While I was in college, being a real estate agent was the last career on my mind. I knew that I was headed into business, preferably one that I could own myself. I have always had the entrepreneurial spirit. I wanted to be of service to others. In fact I have a well defined life purpose: To be of maximum service to God and the people around me. I love fitness! Being an avid rock climber and mountaineer, physical exercise is  a large part of my life. So, when I was in school I thought that I should become a Physical Therapist. I could own my own practice, be of service to others, and teach others how to use exercise to heal from injury. Sounds perfect doesn’t it? Nope, not for me.  I loved the Biology, Chemistry, Anatomy, in addition to my regular Business degree classes. But part of the path was to volunteer or work for other PTs.  I acquired about 800 hours of paid/volunteer time.  They have this requirement for a reason.  If you are going to get your Doctor in PT t...
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Well it is time for a few New Year resolutions.
2008-01-01 01:56:00
With this blog still in it’s early development, I have many resolutions to take it to the next level: 4 Posts a week Increase RSS subscribers from 18 to 50 Post monthly Market Statistics for Seattle’s main neighborhoods Hold one first-time buying seminar each month starting in February Grow my network of co-operating authors and find at least one guest author each week. For personal resolutions, my wife and I are expecting our first child in August.  I will be learning how to work more efficiently to keep the same output of work while decreasing the amount of time that I spend doing it.  I am going to need all the time I can to prepare for our coming child. I hope you have your resolutions for the new year, and wish you luck in achieving them. I know that the more people that know my resolutions, the more people that keep me accountable to them, the more likely I am to reach them.  What are yours?
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Debt to Income Ratio
2007-12-27 17:33:00
Rhonda Porter at the aptly named MortgagePorter.com, gives us some great advice on Debt To Income ratio or DTI.  She explains and lists some of the standard DTI ratios and then reminds us that, “Just because you qualify for a higher mortgage payment does not mean that you must have it.”  All too often the home that clients have to own is the one that is priced at the absolute maximum that they can qualify for. While maximizing your DTI isn’t always the wrong move, it can be devastating. I work with several clients who have had their homes listed with another agent and had the listing expired because it was overpriced.  Often these clients purchased their home just in the last few years and even threw in a little refi when the rates looked good.  Now that the market has changed and values are being re-examined, they’re in trouble.  For whatever reason they have to move and need to sell their home, often because of other financial stressors, to reduce thei...

A little encouragement.
2007-12-27 15:41:00
Over at Issaquah Undressed, Larry Cragun give us a little encouragement to use the lender recommended by your real estate agent.  Time and time again I have found this to be true.  While there are some occasions in which a client had worked with a lender before and had a great experience, most of the time it has been a disaster.  Whether they have chosen a family member or friend and they are trying to do them a favor or they are going with the person who called them just after dinner asking about their Refi and ARM, you should use someone who has something at risk.  Your agent will have a couple of lenders to recommend to you.  These lenders get referrals from your agent on a regular basis.  If they drop the ball and you have a rough experience they are not only losing out on your business but all the business that would come from your agent.  So instead of losing one loan they are potentially losing several.  They will pay close attention to how they can best serve you kno...

Your Real Estate Negotiating BATNA, from the Sellers perspective.
2007-12-26 14:59:00
So we have talked about what a BATNA is and how it relates to Real Estate from the buyers perspective, what about the seller.  This can be a touchy subject for many sellers, “Full price or nothing!” I have heard many say.  Well that would be great but it doesn’t always work that way.  Neither Sellers or Real Estate Agents get to decide at what price a home will sell for, buyers do.  Lets look at an example: Joe and Jane have found and purchased a home closer to their preferred elementary school, Alki Elementary in West Seattle.  Their old house in the Alaska Junction is currently vacant.  Between the utility bills and their mortgage, it is costing them about $2,500 a month to keep that house warm and showable.  Currently the housing market in West Seattle is averaging about 100+ days to sell a home.  That is just over 3 months of mortgage and utilities. Their house in the Alaska Junction is comparable to other homes that have sold for 500k.  They set their...
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Before you negotiate a real estate contract, Know your BATNA!
2007-12-24 22:59:00
Batboy who!? No not batboy, your BATNA.  Best Alternative To No Agreement (BATNA.)  The concept was originally created by Roger Fisher and William Ury, Getting to Yes: Negotiating Agreement Without Giving In.  Before you begin the real estate negotiation process you need to know at what point you will walk away, also known as your reservation price or set point. Basically what it comes down to is this.  How much do you want this house or sale as it may be. What would your next best choice be if not this house.  If you have to have a specific piece of real estate and no other will do, then you really have no business negotiating hardball style. Would you really want to risk losing  the home of your dreams. If it is a toss up between two or more homes then ask yourself ,what price would tip the balancing point between the two homes?  This would be your BATNA.  Let look at an example: Joe and Jane would like to live near the Alaska Junction in West Seattle.  They have found ...
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You flinch when someone drops a brick on your foot.
2007-12-18 16:12:00
Figuratively, of course. When receiving an offer that is too low, and they all are these days, it is important to use everything you can to get an edge on your competition. Negotiation tactics are an edge that all top producing agents have.  This post is the second in a series on Negotiation tactics and real estate. When an initial offer comes in the correct reaction is to “flinch.” You want the bearer of the offer to feel like they just dropped a brick on your foot. “Ouch!”  Then wait. Don’t say anything. Nothing. Silence, is the next move. Almost like you are waiting for an apology from the brick dropper. Wait until they talk next, no matter how long it takes. I have waited so long that people have asked if I was still on the phone, like it was a dropped call. When I am shopping in the grocery store and I accidentally bump someone with my cart, my first reaction is to apologize. I have actually had agents, after dropping a brick on my foot, apolo...
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Has the bottom dropped out of your real estate agent?
2007-12-18 15:42:00
The market is changing, but I mean that the confidence bottom has dropped out of some real estate agents. I have always been a student of the human condition. How people react when their ego is hurt, what they do when they are in a position of power, or do they go on the defensive when threatened. A real estate agent is supposed to be your protection from these absolutely normal reactions to situations, especially when the bottom drops out of the real estate market. Barrier to emotion, is one of the benefits to using a real estate agent to negotiate. Any agent really, whether it is a sports agent or an actors agent, is a negotiating tool. When the seller, or buyer as it may be, comes back with an outlandish response, your agent is there to respond using wise tactics. All too often agents either just say, “Thank you for the offer I’ll see what I can do” or they over react giving away their clients real position. Either way hurts their client, not good business skill...
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West Seattle Junction Plaza Park
2007-12-11 01:05:00
Located in West Seattle on SW Alaska just west of 42nd next to the Alaska House, this park was planned for development in 2005.  With 200,000 for acquisition costs with a projected construction start of Summer 2007, we are a little behind schedule in the Alaska Junction .  Up until just recently this has just been a fenced off area, near the Alaska Junction.  They have spread the grass seed and now we are watching it grow.  With 2008 rapidly approaching I doubt we will see it finished this year, and by the looks of the design it wont be finished for quite a while. Here is what it currently looks like: I have to say that even this sparsely planted grass and yellow tape, it is better that the chain-link fenced gravel field that it used to be.  The West Seattle Junction will be a better place when this project is finished. Jonathan Martin GuideToSeattleRealEstate.com
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Pricing! RIGHT the first time!
2007-12-08 02:15:00
Pricing a home, the key to a sale.  If pricing isn’t right the first time ,we all know that the home may not sell.  In this market, pricing is key.  Here is situation were the comparable pricing that was initially presented was the correct price to set the home at, not what the seller wanted. Well, we all make mistakes.  How we learn from them is the key. This is an example of a time when I should have been more forceful and possibly not taken the listing. I took this listing and allowed the seller to talk me into a higher price for the home, bad mistake. The home is a beautiful 3 bedroom rambler just south of Seattle.  It had an updated kitchen and the owners took fabulous care of the home and the yard, it showed like a champ.  With all of the updates to the home it comped out at 289k.  During the listing presentation I allowed the seller to talk me up to 299k for the home.  I said ok based on a pre-signed price change form for 30 days out.  I gave a day or two fo...
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RSS Feed Reader
2007-12-07 23:20:00
So how many blogs do you read?  I currently read about 25+ regularly.  Most are real estate oriented others are Seattle specific and a few just for fun.  But using the Internet Explorer RSS reader was driving me crazy.  It just took too long to go through all of the posts and decide which conversations to join.  I did a little research and exploring the notion of using a RSS Feed Reader .  I decided on Google Reader.  Mainly because of its ease of use and my ability to read through the daily’s quickly.  Do you use an RSS Feed Reader, if so which one?

Lake Alaska
2007-12-04 22:35:00
After our little late fall rain, the neighborhood hole is now a lake.  This is the corner of 42nd and Alaska in West Seattle.  They are down about 60 feet and planning on going further.  The lake has slowed their progress. They have been pumping water out for the past two days. 
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Lake Alaska
2007-12-04 22:35:00
After our little late fall rain, the neighborhood hole is now a lake.  This is the corner of 42nd and Alaska in West Seattle.  They are down about 60 feet and planning on going further.  The lake has slowed their progress. They have been pumping water out for the past two days. 
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No Access = No Sale
2007-12-04 21:08:00
Last week while previewing for a buyer in the Bellevue area, I ran into a home without a keybox, by sellers request.  On mission that day I saw about 30-35 homes.  It was a very productive day, I am able to preview about 8-10 homes an hour depending on proximity.  I generally run in and tour while taking notes and comparing the home to the rest I have seen that day.  Previewing real estate without buyers is quite fast.  Once I have narrowed the field and chosen the best listings to show I show the buyers at a much more methodical pace. My clients were looking for a 3 bedroom home with 2200+ sqft in Bellevue.  One of the homes I tried to preview was listed by a flat fee FSBO company.  The seller had requested to not have a MLS keybox on the door.  I was unable to reach them over the phone so I was unable to view the home.  That day I was able to narrow the field from 30+ to 12.  When I showed the homes to the buyers we were abl...
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No Access = No Sale
2007-12-04 21:08:00
Last week while previewing for a buyer in the Bellevue area, I ran into a home without a keybox, by sellers request.  On mission that day I saw about 30-35 homes.  It was a very productive day, I am able to preview about 8-10 homes an hour depending on proximity.  I generally run in and tour while taking notes and comparing the home to the rest I have seen that day.  Previewing real estate without buyers is quite fast.  Once I have narrowed the field and chosen the best listings to show I show the buyers at a much more methodical pace. My clients were looking for a 3 bedroom home with 2200+ sqft in Bellevue.  One of the homes I tried to preview was listed by a flat fee FSBO company.  The seller had requested to not have a MLS keybox on the door.  I was unable to reach them over the phone so I was unable to view the home.  That day I was able to narrow the field from 30+ to 12.  When I showed the homes to the buyers we were abl...
More About: Sale , Access

Pricing Your Home
2007-12-02 16:39:00
Establishing your home’s true market value (selling price) is one of the most important steps in the selling process. It is vital to do it right the first time. There is a fine line between getting as much as you can for you’re home or asking for too much and have it not sell, or worse yet not enough and leave money on the table. Your real estate agent can give you an estimate of your home’s value. This is called a Comparable Market Analysts or CMA. Your real estate agent will compare the features and benefits of other homes that have sold recently to your home to help you determine the value. There are many other factors that tie in to the CMA. What is the average time it takes to sell a home? What is the sale price compared to original listed price? An experienced real estate agent will spend hours working on your CMA, if you are interested in having this report just let me know and I will be more than happy to provide you with this free of charge. I will also provide you w...
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