Greater Seattle’s Shifting Real Estate Market

You’ve probably heard that the Seattle’s sizzling real estate market has cooled a bit with home prices starting to come down. This is great news for folks who have grown weary battling in bidding wars only to have their offers rejected time after time. It looks like, at least right now, things may be returning to be more “normal”.

This also includes having interest rates returning to a more “normal” and no longer being artificially sweet thanks to the Fed. The graph above is from Freddie Mac.

What does this mean for buyers? To begin with, it’s likely there is more inventory for you to chose from without having to deal with a bidding war. What a relief!

Buyers may also be able to ask the seller to contribute funds towards their allowable closing cost and pre-paids (property taxes and home owners insurance). The amount a seller can contribute depends on the mortgage program and the percentage of down payment from the buyer. Buyers should check with their mortgage professional prior to submitting an offer to find out how much a seller can contribute towards closing cost based on their scenario. In order to have the seller contribute towards your closing cost and/or pay discount points to reduce your mortgage interest rate, your real estate agent will need to have this included in the purchase and sales agreement when they present an offer.

Even with a softer real estate market, home buyers should still keep up with their “A” game.

• DO start the mortgage preapproval process early and get preapproved with a Licensed Loan Officer PRIOR to submitting an offer.
• DO find a real estate professional who will represent YOU as the home buyer. In other words – avoid working with the Listing Agent as they work for the seller.

If you were preapproved before and re-entering the real estate market after 3 months, you may need to refresh your preapproval status. Your mortgage professional will most likely need to update your credit report and obtain your most recent paystubs and bank statements. They should also send you an updated scenario with current mortgage rates.

If you are considering buying (or refinancing) a home located anywhere in Washington state, I am happy to help you with your mortgage needs! Click here if I can provide you with a no-hassle mortgage rate quote for your home located anywhere in Washington state.