Monday NW Seattle Real Estate Market Update | April 12th, 2021
This week we discuss home pricing strategy. Specifically we talk about what happens when a Broker decides to under price their listing rather than pricing it at Market Value. This exact thing happened last week for a listing in North Seattle. We give our two cents on the subject, explain how it impacts housing statistics, and mention the way that we would price your home if Brenner|Hill was to list it. And as always we check in on last week’s housing numbers and interest rates in NW Seattle.
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We hope you enjoy the upcoming sunny ☀️ week!
-Steve & Sandra
𝐴𝑛𝑑 𝑎𝑠 𝑎𝑙𝑤𝑎𝑦𝑠, 𝑖𝑓 𝑦𝑜𝑢 ℎ𝑎𝑣𝑒 𝑎𝑛𝑦 𝑎𝑑𝑑𝑖𝑡𝑖𝑜𝑛𝑎𝑙 𝑟𝑒𝑎𝑙 𝑒𝑠𝑡𝑎𝑡𝑒 𝑞𝑢𝑒𝑠𝑡𝑖𝑜𝑛𝑠, 𝑓𝑒𝑒𝑙 𝑓𝑟𝑒𝑒 𝑡𝑜 𝑐𝑎𝑙𝑙/𝑡𝑒𝑥𝑡 𝑢𝑠 𝑎𝑛𝑦 𝑡𝑖𝑚𝑒! 𝑊𝑒’𝑟𝑒 𝑎𝑙𝑤𝑎𝑦𝑠 ℎ𝑒𝑟𝑒 𝑡𝑜 ℎ𝑒𝑙𝑝!
Steve 📲 (c) 206-769-9577 📧stevehill@windermere.com
Sandra 📲 (c) 206-271-7100 📧sbrenner@windermere.com
Video Transcript:
Welcome to week 57 of our Monday Market Update. This week, we wanted to chat about pricing and how challenging it is to find the sweet spot for a list price.
Right, so recently, there was a home that came on the market in North Seattle that was listed for 850,000 even though the closed comps showed that it should sell for right around 1.1 million. The listing broker was hesitant to price it closer to a million, even though he knew it was going to sell for over a million dollars. So they ended up with 15 offers, seven of which were above a million, and it went under contract for 1.1 million which was the true market value of the home.
So the issue with this type of low listing price is that it’s skews the appreciation numbers because right now it looks like the home appreciated 30%, but in reality, it’s sold at 100% of market value, which was $1.1 million. In the past four weeks in Northwest Seattle, 69% of homes sold above asking price and averaged 113% of their asking price. In theory, this number should start to come down as brokers start to price their listings at the true market value instead of purposely pricing super low for multiple offers.
Yeah, you know, I think brokers get really nervous about listing closer to the true market value because they don’t want to scare away buyers but newsflash buyers are super savvy. They are aware of what other listings are closing for.
Hey, I appreciate the fear but we feel it’s better to price closer to where the home would actually sell.
Right, so taking that seller, for example, he or they had to contend with 15 offers when really only seven of them were legitimate offers, the other eight that were below a million, they didn’t even stand a chance. Anyway, let’s go ahead and chat about what’s been happening this past week in Northwest Seattle.
Let’s do that. Inventory levels have continued to creep up. We currently have 131 homes for sale in Northwest Seattle. We had 72 new listings last week, which was the same as the previous week for the third week in a row, homes going under contract did not quite keep up with the new listings coming on which is why we are seeing inventory levels go up.
Right, but what’s not going up, thank goodness, is interest rates. And I’m sure buyers and sellers are super relieved to see that the interest rates have remained pretty stable over the last several weeks. They’ve been kind of bouncing back and forth between 3.25% and 3.375% for a conforming loan. But anyway, if you are curious what your home might be worth in our super hot sellers market, definitely click the link. And if you choose us to list your home, we promise to list your home at the true market value.
Enjoy the 70 degree weather forecast for this week. I cannot wait. Bye-bye.
