Seattle/Tacoma purchase price offer
Hello, in the PNW, the market is booming! I'm wondering, when you first make an offer on a home, how much more or less are you offering on the purchase price? Especially On hot deals that are on the market that you can assume have multiple offers. Especially on homes in the Tacoma area. I was wondering because I have been watching a couple homes in the 300k range (which is the medium price in Tacoma area) and I wanted to measure how much more I should offer, where My offer won't be over looked. I know you have to take into consideration, factors like how long it's been on the market, area, CMA, etc.
suggestions anyone?
@James Tarleton - Hey James!
I’m a designer and contractor in Seattle.
I think the tough part is that you’ll win some and you’ll lose some. There are several things you can do to help your odds.
Do you have a local agent who is tapped into the market? That will help with questions like this.
If you feel like you don’t need an agent you can have the listing agent represent you and they will get double commissions on the deal so they have an extra incentive to push your offer.
You can come with a pre approval from your bank or proof of funds.
Offer above asking if you can still make the deal work if you’ve been losing deals.
Remove contingencies if you are confident enough.
Hope that helps!
- Real Estate Agent
- Seattle Investor: 80 Client HouseHacks & Counting! I Own: 🏠7 LTRs 🗻6 STRs, 🏘️3 DADU's
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A common mistake I see beginning investors make is assuming that list price means much at all. The real estate market isn't a grocery store, and list price is just a made up number that the listing agent and the seller decided on together. Sometimes its low, sometimes its high, but that doesn't make the property a good deal or a bad one.
The trick is finding properties where the numbers work for your investing goals - whether than means purchasing above or below list price. I paid $170,000 over list price on one of my best investments, as the list price didn't make any sense and it was still a good deal for my criteria at $170,000 over. I've also bought properties $20,000 under list price that ended up being bad deals.
At the end of the day, sellers are human and make pricing mistakes, buyers are human and make offering mistakes, but the numbers aren't human and they don't lie!
