I'm selling a home in Southend Tacoma but it seems buyers are looking for that "Deal". Would it be better to wait until next spring?

Asked by Tacoma Home Owner, South End, Tacoma, WA Wed Jun 1, 2011

or try and sell this summer? Foreclosures are putting values in the red......

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18
Karla Wagner, Agent, Bonney Lake, WA
Wed Jun 1, 2011
Good Morning Tacoma,

As Kary said, no one can predict the future. However, over the past 3 1/2 to 4 years, we have seen continuous pricing declines year after year. A few of our Tacoma listings that didn't sell last year, were relisted this year at a lesser price, but have recently sold. Which is a positive sign. As I tell all of my clients, now is the time, as inventory levels have fallen over the past several months, and although prices are not increasing, you have a much better chance of achieving a sale at this time.

However, if you are prepared to wait it out until we see some sort of stability, and then continue to wait for recovery with regards to pricing...my guesstimate would be to stay put for another 3-5 more years. But then again, who knows where we will be. Personally, I believe that next spring will be worse, as there are more mortgages re-amortizing from 2007, meaning there will be potentially more short sales and preforeclosures, which have a great affect on our declining pricing. Also, there are many banks that have been holding onto foreclosures, as the market was flooded with inventory. So yet, another wave of bank owned is yet to come.

Not trying to instill fear, just giving you the reality of the market. I'm a full-time Realtor that has been through the ups and downs of this market over the past 10 years. My business partner has specializied in the Tacoma market for 20+ years as well. So you'd like a fair and honest opinion on the value of your property, please let us know, we are here to help.

Best wishes to you,
Karla
1 vote
Kary Krismer, Agent, Renton, WA
Wed Jun 1, 2011
That's something sellers have been asking since 2008, and each year the answer has turned out to be no. Next year the answer could be either yes or no. No one can predict the future.

What buyers are looking for varies. Some are looking for houses in good condition, and those do tend to sell fast even sometimes if they're not priced aggressively, but they do need to be priced reasonably.
1 vote
find12buy, Both Buyer And Seller, South Prairie, WA
Sat Nov 8, 2014
If you are interested in a cash option and quick closing, please contact me. There are investors ready to cash you out now, or they have a few other options that may really interest you a lot.
0 votes
Deborah Garv…, Mortgage Broker Or Lender, San Diego, CA
Mon Jul 8, 2013
Interesting comments below...and a reminder that real estate is all about "local, local, local"! Working with a real estate professional and heeding their counsel would seem to me to be the best advice.

But, let's talk financing. Just look at the difference in rates since you first posted your question. We have had some of the biggest jumps in rates over the past twenty some years. In many markets, the increase in rates just nixed many consumers out of the home buying opportunity (sounds like 2005, right?).

When it comes to buying a home it is never really about what the sale price is, or what the interest rate is....but about the Housing Affordability Index. This index, or valuation, has been seriously altered over the past month. And, has left a lot of buyers singing the "Wisha, Shoulda Coulda Blues" as rates continue to climb.

Rates are still exceptional....it remains a matter of perspective. But, as much as I....and probably every mortgage professional.....has been trying to counsel consumers that the historically low rates were, at the core, artificial because of the FED buying mortgage backed securities; the fact is there has been a great deal of complacency in the home buying prospects.

Watching rates increase will likely, albeit slowly, turn many fence sitters into viable and active buyers. And, maybe shift the focus from looking for the "Deal" to finding a home before they are priced out of a market.

All my best,

Deborah
NMLS #279125
0 votes
Anna Matsuna…, Agent, University Place, WA
Mon Jul 8, 2013
Right at this moment, interest rates are low, giving higher buying power to the average client and making many of them jump off the fence right now since they see it as a "now or never" situation. As interest rates rise buying power will drop, causing there to be less buyers and lower values yet. I would not suggest waiting IF you want to move.

I would suggest doing all you can to get your home to pass a VA or FHA loan inspection so that you are less competing with many of the bank owned properties that will not do so.

Really whether you should buy or sell right now however is best determined by an indepth consultation to help you and I look at the entire picture. It could be a good time for one person to sell today and a bad idea for their next door neighbor depending on each person's entire situtation.
0 votes
BG, Home Buyer, Phoenix, AZ
Fri Sep 16, 2011
I thought there are only two seasons in WA , rainy and a bit less rainy :)
0 votes
Alain Picard, Agent, Puyallup, WA
Fri Sep 16, 2011
The prices now and next spring will most likely be about the same for homes in Washington so I would only sell your home if you have to. If you don't really need to sell now you should try to wait it out for a couple of years and then you will have a better chance of getting more money for your home. If you have any other questions you can e-mail me at apicard@betterproperties.com.
0 votes
Nancy Tibeau, Agent, AUBURN, WA
Thu Jun 2, 2011
I suggest you watch the YouTube video below. Although it is done by a Keller Williams agent in Spokane, the information applies to our area as well ~ only we have even steeper decline in median price. Bottom line is either sell now or be prepared to stay many more years in your house before you see any measurable appreciation. Of course, it all depends on your motivation for wanting to sell.
Web Reference:  http://youtu.be/L5ST9vpfLww
0 votes
Jirius Isaac, Agent, Kenmore, WA
Thu Jun 2, 2011
I do not think the market next spring will bring you more money, and maybe less. Only sell if you have to & keep the home as long as you can. If you have to sell in the next couple of years, I would sell it right away.
0 votes
Alex Foraker, Agent, Puyallup, WA
Wed Jun 1, 2011
My personal opinion is that there is a shadow inventory of bank owned and distressed properties that we will see coming on the market surely to reduce property values further. As I've advised other clients the price I tell you in six months from now will probably be less than what your home may be worth today. I can't help but look back fifteen yrs ago vs current values and even with depreciation there is a still a huge margin of affordability.
Price is very important but making sure your home shows well, repainting or addressing deferred maintenance makes a huge difference in procuring a sale. The agent you select matters as well, aggressive advertising, capturing property features and characteristics and negotiations all play a role on your net amount. Good luck to you I hope it works out.
0 votes
Don Dutton, Agent, Puyallup, WA
Wed Jun 1, 2011
Sounds like your Realtor has informed you that your home isn't worth as much as you hoped for. Listen to your Realtor. If you don't need to move stay put but don't plan on seeing any increases in price for at least 24 months. Your equity will be less next Spring.
0 votes
Phil Rotondo, Agent, Melbourne, FL
Wed Jun 1, 2011
Buyers have been looking for a deal since Peter Minuit purchased Manhattan for $24.00.
Web Reference:  http://www.321property.com
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Wed Jun 1, 2011
What does your Realtor suggest? The most common mistake I see buyers and sellers make is not following the advice of their Realtor. Many sellers are waiting for the market to improve, could be a very big mistake.

First, if the price of their home goes up, so does the price of the home they want to buy.

Second, if the market improves chances are interest rates will rise because of the increase in demand for money. A 3% increase in mortgage interest rates increases the payment on a $150,000 mortgage by more than $106,000. A borrower would need an extra $160,000+ in income just to make the extra payment.

Holding out for a few thousand more could be a very bad path to choose.
Web Reference:  http://jamessimms.com/
0 votes
HLR, , Oregon
Wed Jun 1, 2011
Here is more information to help you understand your market area, as you not giving the zip code I can break it down for you but in all of Tacoma there are 499 homes in pre foreclosure status, with notices of default on them. Below is the website. Find your zip and see what's pushing your values. These are not yet bank owned. Borrowers may be working with the lender, and that may take months longer than the 4 months to foreclose. The banks are dragging out so all the properties that have borrowers in trouble don't hit the market at once.

Best to you all. HLR

This site is used by the trustee lawyers for the banks. Understand that if there are that many in pre foreclosure there are normally that many bank owned in the same area.
0 votes
Tonya Brobeck, , Everett, WA
Wed Jun 1, 2011
If you don't need to sell, don't. Prices have dropped 3% first quarter this year already. We're in the midst of a double dip due to the amount of bannk owned properties being let loose on the market. There is no way to say if next spring will be any better. If you want to see maximum profit, your best bet is to wait 3
-5 years. Its been reported there are atleast 3 years of foreclosure inventory to unload on our market place. Of course that was general for the country. Talk to local realtors in your area and watch the case & shiller reports so you can follow the market.
0 votes
Kary Krismer, Agent, Renton, WA
Wed Jun 1, 2011
HLR mentions being in line with what's on the market around you. One thing to point out is that if you're not a short sale (you have equity above your loan after costs of sale, or can bring cash to the table to close), then you do not need to compete with short sales. Short sales are attractive to a very limited number of buyers, and less demand translates into lower prices. So when looking at the sold comps and active listings, you need to be able to distinguish the short sales from the ordinary listings. Sometimes the same is true to some extent with bank owned listings, but there much more analysis is required.

There are exceptions to this. For example I once ran into a stand alone condo neighborhood up north in Snohomish where probably everything on the market was a short sale, and there was nothing similar anywhere near it (e.g. within 5 miles). There I suspect your ability to get a price much higher than a short sale price would be very limited.
0 votes
HLR, , Oregon
Wed Jun 1, 2011
If you don't have to sell, this is not the best time, the market needs to clean up the short sales, foreclosures before the market will return to some kind of normal conditions. Wait if you can, but the realtors most likely will tell you not to wait, in their words, any house can sell in any market if the price is right. So how low are you willing to go to be in line with what is on the market around you?

HLR Worked the Tacoma market for 15 years.

Best to you!
0 votes
There are also a few other options they may have through a cash investor. This involves a cash buyout, hose swap or even possibly assuming the mortgage. These options might help quite a bit, anyone who may be in the similar situation should feel free to contact me.
Flag Sat Nov 8, 2014
Dp2, , Virginia
Wed Jun 1, 2011
It's dangerous to try to time the market. No one could accurately predict whether the market would be better/worse then. Besides, even if someone were to accurately predict the way that the market prices will trend in Spring 2012, then the magnitude of the price decrease/increase still might not work so well for you. In other words, it's better for you to make a buy/sell decision today with data of today, and make a decision tomorrow with the data of tomorrow.
0 votes
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