Residential real estate in our corner of the Pacific Northwest is speeding toward the traditionally slow winter months, but it’s anyone’s guess whether the market will experience its normal slowdown this year. We invited Michael Orbino, managing broker of Compass, to join our September webinar to assess the current state of the for-sale market and flag a few common issues buyers and sellers should be on the lookout for.

Buying & Selling

The regional residential market is moving fast. The current time from opening the listing to signing a contract is five to seven days, and the average time to close is 14 to 21 days.

Greater King County is now outperforming Seattle metro, which is unusual but a growing trend. Sales and prices are up in Snohomish and Pierce Counties and Eastern Washington is seeing a increase as well. It is a seller’s market, especially for the more limited supply of higher-end properties.

Common Issues

To be successful in the market, buyers and sellers should pay attention to:

Pricing Strategy.

Sellers have options. They can price low to drive multiple offers and potentially get an offer for over their anticipated asking price. Or they can price higher to allow room for negotiation. One of the factors to consider in setting a strategy is seasonality. It takes longer to sell a house in January and February than it does April in May.

Lender Hiccups.

Lenders are backed up because of all the activity, which can create unexpected delays in the closing process. Additionally, the guidelines and reserves for selling loans back to the government on secondary markets are in flux, slowing the process further. An experienced broker and attorney can help you anticipate and navigate these lender-side issues.

Earnest Money.

In a hot market, buyers may have multiple deals in play concurrently. Sellers believe once they have the earnest money the buyer won’t back out, but people walk away all the time, willing to leave that money on the table in favor of a better deal or better property. Sellers need to factor that into their plans. Not all buyers want to risk losing their earnest money. For them, the best practice is putting an offer only on the home you really want instead of settling for less than you really want just to "get in the market". Buyers and sellers should remember that even if they have the most clear-cut case on an earnest money dispute, it takes a court order to have that money released, which is time-consuming and expensive.

To get the most from our hot residential marketplace, regardless of which side you’re on, it makes sense to work with an experienced broker and legal counsel.

Get more details by tuning into the full session below.

This information doesn’t constitute financial or legal advice. Always check with an attorney, real estate investment or financial expert before making decisions.

As always, reach out if you have any questions.