Patience is the key in getting a good deal for a home (Seattle: for sale by owner, real estate)

[irrational exuberance]

I wrote a previous blog about Pierce county house prices relative to the local economy and things are starting to happen sooner than later. I never claim to be a genius or big shot economist, but I do know economics 101. Supply is rising while demand and prices are going down. Foreclosures in Spanaway, Bonney Lake, Fife, and Puyallup are steadily rising. People should start looking at what surrounds those areas as far as job market. Majority are retail jobs probably averaging $10 an hour. Look at property taxes, they have skyrockted. I hope that legislation helps I dont want to be paying $4k a year in property taxes for a house I bought for substantially cheaper. Since my last blog I have fired my 2nd real estate agent. I have nothing against him but he couldnt recognize talking to a person with a little sense, to an over optimistic buyer who hopes to make big profits in the market in 2 years. He even admitted a couple times that My wife and him remind him of investors and not the average couple impressed with a nice kitchen or counters. Everything in that house is well deserved by anyone paying the mortgage because when its all said and done you paid about $700k for borrowing $300k. The Fed is still lowering rates. One guy I was talking to that is a real estate agent gave it to me straight. He said May/June 2008 is predicted to be the lowest point for the housing market in pierce county. Then a day or two ago I read an article stating the same thing. I just encourage all first time buyers and all other buyers to be patient, everything is going our way and time is telling the inevitable (appreciation rates/prices 4x yearly income growth wouldnt sustain) Dont think taking $20k off a house over priced by $60k is a good deal. Big local banks are getting hit. Its always been said that housing markets are local but the only housing markets increasing notably are the ones with house prices barely over $200k. Everything is a function of price. While my wife and I track prices, we continue to save substantial amounts of what could have been interest in a mortgage. I did the math and basically, if you have a $350k mortgage than it takes you about 5 years to pay down $20k in principal, so every $10k is about 2.5 years of principal. You still got to consider interest rates which I figured about 6%. Every month prices are dropping by atleast $8k. The truth is in the numbers and I wish that people would have understood that when they purchased in 2005-07. There is such a big divide between builders and individual sellers that are stuck trying to sell a house they bought in 2006 for $350k now trying to sell for $380k, and the builders that built the same time selling for $315k. Factors like that are going to continuously drag the market down but coming in Im trying to buy low and one day sell high.

[Ultrarunner]

Originally Posted by irrational exuberance

Look at property taxes, they have skyrockted. I hope that legislation helps I dont want to be paying $4k a year in property taxes for a house I bought for substantially cheaper.

You are preaching to the choir regarding the outrageous run up of WA property taxes... I really don't know how people can afford it.

[Balco9]

First off Real Estate Agents are absolutely worthless are over paid. They are in business to help the helpless people who know zero about real estate or relocating to a new area.
90% of them are bad at customer service or will lead you in the wrong direction. It's very important to have a great realtor on your side.
I also heard mid next year is a great time to buy...
20k off the asking price is normal and not considered a low ball for a 300k home.
I heard of 100k off the asking price for homes 400k-800k and getting it.
A home for 350k in pierce county is basically considered the ghetto now....

[michael krotchie]

Originally Posted by Balco9

First off Real Estate Agents are absolutely worthless are over paid. They are in business to help the helpless people who know zero about real estate or relocating to a new area.

I have to agree with part of this statement, except I would add the word "many" before Real Estate Agents.

Originally Posted by Balco9

90% of them are bad at customer service or will lead you in the wrong direction. It's very important to have a great realtor on your side.

Agree completely here.. We don't need more agents.. just better ones.

I liked your post irrational exuberance, completely on point!

[St.Croix to Seattle]

Real Estate Agents make more the less informed you are,I have been so disgusted with Real Estate agents I have had to use over the years that I now spend a few hours every eve studying for my Real estate License,,When I finally make the move to Washington State-I will find a great home and pay the right price for it,and get paid for my trouble..I just can't see doing it any other way,,I have no intention on working as a Real Estate agent but any property I purchase for the rest of my life,I will get paid to do so,instead of paying someone else to tell me there is nothing in your 450k budget in such and such area when I have sevral homes in front of me I took 3 minutes to find but they just can't seem to find anything under 540k

[wannabeaTexan]

Originally Posted by St.Croix to Seattle

Real Estate Agents make more the less informed you are,I have been so disgusted with Real Estate agents I have had to use over the years that I now spend a few hours every eve studying for my Real estate License,,When I finally make the move to Washington State-I will find a great home and pay the right price for it,and get paid for my trouble..I just can't see doing it any other way,,I have no intention on working as a Real Estate agent but any property I purchase for the rest of my life,I will get paid to do so,instead of paying someone else to tell me there is nothing in your 450k budget in such and such area when I have sevral homes in front of me I took 3 minutes to find but they just can't seem to find anything under 540k

That's a great idea. How long is it taking you to get through for the license?

[mthomson]

Interesting threads...disappointment with agents I worked with is what led me to leave teaching 4 years ago and go into real estate. I liked the agent who represented me, but the cross sale agents left me thinking, "If they can succeed, I can thrive." I've been surprised at how many good agents I've found since being in the business. My own opinion is that the vast majority of Realtors truly care about their clients and are very good at what they do. But like so many areas, there is a very vocal minority who drag down the industry's reputation.
A couple of thoughts about getting your license. Firstly, it's not terribly time consuming (took me about 3 months while I was still teaching). Secondly, it is expensive and not necessary if all you're looking to do is buy and sell your own properties. Getting a license, paying Realtor dues, paying MLS dues, hanging your license at a company, all cost money. If you are trying to make a business of it, you then have marketing and advertising costs, office rent, and if you're a good agent continuing education costs. If all you want to do is buy and sell properties without an agent, by all means study the industry, but there's no need to get your license. You can always list a home For Sale By Owner, and you can buy a home without professional representation. Most legal home purchasing documents can be found online.

[St.Croix to Seattle]

By The Time we close escrow on our First Washington State home in Early 2008,I would have spend about $412.00 to obtain the license-including study guides bought on line,State Test applications fees...In Seattle I know they give the Test even on Saturdays,,,I took a sample test in the study guide and missed maybe 2 questions-I consider myself to be of slightly above average intelliegence and my real estate experience includes buying & selling of 4 homes/condos thus far in ...We are shopping in the 450k range for a sound view older home near the east or west sound-from as far as Illahee section of Bremerton to West Seattle...Average commission to Buyer's agent (me) on that price is 13,500+ so for what is cost to get and maintain the license through our transaction sometime in 2008,I can pay myself for buying a home that fits our needs and get a few toys right away like a spa with gazeebo or huge plasma set up,instead of have some agent show me brand new tract homes in a subdivison when I specifically asked about older homes in a neighborhood where all the homes do not look alike...Make great sense to pay myself-by the time i take the test and pass the it might be 2-3 months of study and research covering about 15 a week on average...

[Balco9]

I heard of a new company called $500 realtor, but have not research any infomation about them yet. Honestly all in all, realtors are over-paid as well as their brokers. Many working mother's leave their profession to be a Real Estate Agent to spend more time with their children. A lot of time this creates bad customer service as their children
are priority and customers phones don't get returned in a timely fashion...

[Balco9]

It's called $500 realty...
Just google it to look it up.