Home Buying • Real Estate • November 7, 2016

What NOT to Do When Buying a Home

by Chad Dierickx

A photo posted by The Broke Agent (@thebrokeagent) on Aug 15, 2016 at 11:27am PDT

Buying a house is like planning a wedding; most of us don’t do it often, and it changes drastically every decade or so. So, naturally, people aren’t very good at knowing how the process works. Here are a few pointers based on common mistakes I see people make:

Don’t shop for homes on Zillow. I’d like to be a company man and tell you to use windermere.com to conduct your home search, but let’s be honest…a serious home buyer should be using redfin.com. It’s by far the best search experience. The mobile app is amazing too; you’ll receive listing alerts while you’re on the bus or walking through the grocery store, so you can send a new listing to your spouse or real estate agent instantly. Zillow’s data is often outdated or inaccurate, as any serious home buyer will eventually discover.
Don’t go to the bank to get pre-approved. The question of where to get a home loan has long been a soap box issue for me. Your retail bank is most likely not the right choice for a home loan. Small local lenders deliver great service and great pricing. A good lender won’t just be there to help you close on the sale of your home; she’ll also help your odds of being the winning offer. (Quick tip: avoid Chase and B of A.)
Don’t call the listing agent. Buying a home is not like buying a car. When you buy a car, the dealership provides a salesperson who represents the dealership, but no one represents the buyer (no matter what they tell you). When you buy a home, you have your own agent whose job is to represent your interests and goals. If you don’t think your agent represents your interests and goals, find a different agent fast!
Don’t choose an agent because she’s on the page of a home you like on Zillow. There are better ways to find a good real estate agent. Here are a few:
- Ask your friends or co-workers for a referral.
- Use Zillow’s “Agent Finder” tool. It sounds hokey, but this tool is actually pretty useful as long as you know to look past the “Featured Agents” (read: they paid to be there). You can sort the results by things like most local sales or best reviews.
- Ask your mortgage lender who she would recommend based on where you’re looking to buy.
Don’t compromise on what matters most. Most of us make a compromise or two when buying a home. But don’t compromise on the things you really care about. Moving is expensive and time consuming, so find a home you can live with for the long haul even if it takes longer. Location and square footage are really tough to change. Aesthetics are easy! Plus you’ll enjoy making it your own over time.

New Listing • Real Estate • October 25, 2016

JUST LISTED | Mercer Island Mid-Century Modern

by Chad Dierickx

Live out your Mad Men dreams in this sunny mid-century home on the South End of Mercer Island. This 19,800 square foot lot is home to a piece of architectural history designed by Fred Bassetti and built by Theo Caldwell. At the end of a quiet, four-home lane, this property offers privacy and room for outdoor entertaining and play. Walls of windows bring the outside in and take advantage of a private setting in the midst of old growth trees, sprawling lawns and mature landscaping. The renovated kitchen features period details, large island, newer appliances and a custom tile backsplash from Heath Ceramics. This home includes a large master bedroom with en suite bath plus three additional bedrooms, full bath, laundry room, two-car garage and open spaces that live larger than most homes this size. All of this just a half a mile to award winning elementary and middle schools and twenty minutes to downtown Seattle and Bellevue.

Offered at $1,095,000. View more details here, or c ontact me with any questions!

New Listing • Real Estate • September 7, 2016

JUST LISTED | Immaculate 3 bed, 3.25 bath W Seattle townhome

by Chad Dierickx

Immaculate, spacious townhome in popular Youngstown neighborhood with easy access to Rapid Ride transit, Water Taxi, WS Bridge and all that West Seattle has to offer! This like-new 3 bed, 3.25 bath townhome will check all of your boxes. Lower level welcomes you with private garage, private guest suite or study, fully fenced patio/yard area and additional storage. Generous main floor features an open floor plan with gleaming hardwoods, gas fireplace with slate surround, half bath, room for entertaining and great southerly exposure. Upstairs you'll find 2 master suites, walk-in closet, stacking W/D and linen closet. Other features include gas cooking, granite counters, stainless appliances, efficient radiant heat and loads of storage.

Check out all the details here, or c ontact me with any questions!

Market Updates • August 31, 2016

Indian Summer for Seattle Real Estate

by Chad Dierickx

The end of summer is typically when we slow down, take a vacation and prepare for the back-to-school season. But despite historical trends, the real estate market in Seattle keeps on climbing. Home prices in Seattle rose 11% in June compared to the year prior, according to the Case-Shiller Index, which tracks changes in home prices in most major cities. Low supply of homes is driving up prices despite more moderate wage gains.

This isn't just in the headlines; the data rings true for those of us on the front lines. Home buyers are facing 3-5 competing offers on most properties, making things tough for first-time buyers or those with a limited down payment or low risk tolerance. Buyers today are more focused on acquisition than value.

Three out of my last four listings sold in under two weeks to buyers who paid all cash. While I'd love to take all the credit, the reality is that our market is doing some of the work for me. Here are a few of my recent listings along with details about the offers received; click on the photos for more details:

Real Estate • August 26, 2016

JUST LISTED | Queen Anne pied-à-terre

by Chad Dierickx

Ideal city living at the base of Queen Anne just blocks to Belltown, the waterfront and Lower Queen Anne. This immaculate studio lives large with custom built-ins, designer furniture (included with sale), convenient murphy bed and Juliet balcony. Open kitchen includes granite counters and stainless appliances plus an eating bar. Rapid Ride bus line is right outside your door for easy commuting to downtown, stadiums, or Ballard. With convenient in-unit laundry plus secure garage parking and storage unit, this unit has it all. Great building and no rental cap!

Check out all the details here. Contact me with any questions or to schedule a tour!

New Listing • Real Estate • August 10, 2016

Just Listed | Immaculate Magnolia Cape Cod

by Chad Dierickx

3002 32nd Ave W is a thoughtfully remodeled Cape Cod in the heart of Magnolia! Located near Magnolia Playfield, the Village & Blaine Elementary, this well maintained home features refinished hardwoods, newer kitchen & baths, all new systems + appliances, wine bar & so much more. On an over-sized corner lot, this home’s open floor plan flows out to beautiful outdoor space with new deck & fully fenced backyard. Basement features comfortable family / media room, office & large master bedroom with en suite bath & two closets.

Check out all the details here or watch the video below! Contact me with any questions or to schedule a tour.

Market Updates • Real Estate • July 26, 2016

Q2 2016 Market Reports for Seattle + The Eastside

by Chad Dierickx

If you've read any of these recent eye-popping headlines, you won't be surprised to learn that home values continued to climb in the second quarter, with the Eastside topping the charts at 16% year-over-year appreciation. Seattle was close behind with an average of 12% appreciation compared to this time last year.

While sellers still largely dominate the market, more balanced markets are emerging in some areas. This is driven in part by the huge bump in number of sales in the 2nd quarter. How is the market in your neighborhood?

Click here to find your full, local report or just give me a shout for a free market analysis of your own home.

Design • Real Estate • July 5, 2016

8 Home Design Trends for 2016

by Chad Dierickx

When I was growing up in the '80s, brass fixtures were all the rage. Thirty years later (surprise!) brass is back! Home design trends come and go, but here's a look at some of the 2016 trends that excite me.

If you're shopping here are a couple of places worth checking out:

Brass fixtures and lighting | Schoolhouse Electric
Graphic tile | Fireclay Tile
Nest Thermostat

Add your favorites or anything I missed in the comments!

Home Buying • Real Estate • May 31, 2016

Making a Winning Offer in a Tight Market

by Chad Dierickx

Over the past 12 months I’ve helped 24 clients purchase a home. Here’s what I’ve learned in the hottest Seattle real estate market since 2007.

HUNKER DOWN

First things first: It can take a while to find the right home in any market. This market is exceptionally tough, so give yourself time. Find a way to secure a living situation that affords you all the time you need to purchase a new home. If you have a flexible living situation, you won’t be influenced by pressure to move.

SEARCH FOR HOMES SAFELY UNDER BUDGET

Homes in desirable areas in Seattle, Mercer Island and the Eastside are selling above their list price by 5-10%, so if you have a budget of $750,000, focus your search on homes closer to $700,000. This gives you headroom to increase your offer if you face competition without exceeding your budget.

BE OPPORTUNISTIC

Keep an eye out for homes that are easily overlooked by others. Set a saved search on Redfin.com for homes that have been listed for more than a week. You’re far less likely to face competing offers on a home that’s been on the market for a week or more. The same is true of homes that go off and back on the market; this is typically due to a “failed” inspection or the buyer’s inability to obtain financing. These homes go back to the market with egg all over their face, so they can present an opportunity for a buyer who can see beyond their questionable history. Find out what happened, and proceed with caution. You may find a diamond in the rough.

BE PREPARED TO CONDUCT PRE-OFFER INSPECTIONS

When multiple offers are submitted on a property, sellers often care more about a sure thing than a little more money. An offer that’s contingent upon a home inspection won’t stand a chance if another buyer waives the inspection contingency or conducts a pre-offer inspection (“pre-inspection”).

GET THE RIGHT TEAM ON YOUR SIDE

The terms of your offer aren’t all that matters to a seller or a listing agent. The agent representing you and the lender you’re using to finance your home can strengthen or weaken your offer. Having an agent and a lender from a reputable, local firm can boost confidence in a buyer’s offer or take away confidence in the team as a whole. Your agent and lender should help you craft an offer that gives you the best odds, without undue risk.

IGNORE THE LIST PRICE

When you find a home you love, don’t be anchored by the list price when determining an offer price. With homes selling well above the list price, the best way to remain objective while planning your offer price is to determine a value that you believe is supported by recent sales; remember that value is subjective, so your offer should reflect what the home is worth to you.

LEARN ABOUT THE SELLER

Knowing about the seller can help you craft a winning offer! Why are they moving? Maybe there’s a term that matters a great deal to the seller, but very little to you.

WRITE A LETTER

Now that you know a little bit about the seller, be sure to introduce yourself. Tell your story. The best letters will help a seller understand why you love the property and why you’re a great buyer who won’t back out and leave the seller high and dry. If all else is equal, a great intro letter can help tip the scales in your favor.

There are countless ways to make your offer compelling to a seller, but not all of them will work for you. When you find a home that meets your needs, rely on your agent to help you understand how to write a winning offer.

Be careful out there, and holler if I can help you or someone you know!

Home Buying • October 7, 2015

How Much Is a Home Worth?

by Chad Dierickx

I spend a lot of time thinking and talking about what homes are worth. This involves studying similar home sales, digging through listing photos and calling other agents to help form an opinion of value. It's the single most important part of my job when a homeowner enlists my help to sell her property

But when I work with someone looking to buy a home I'm sometimes at a loss trying to provide insights on value. This is because a home's value is extremely personal. Homes have intrinsic value that can't be captured with price-per-square-foot analysis. You'd probably agree that some homes are just good homes–others just don't feel right. It might be a result of the construction quality or remodeling through the years, but sometimes it's something you can't change like the neighborhood, the outlook, the way the home is positioned on the lot or the architectural style.

It's crazy that we put so much stock in comparable sales data when you think about the big picture. This data is pulled from the last six months and, in most cases, the nearby sales tell an incomplete story, in part because our region has such unique, storied old homes. It's also a small-minded way of looking at value because these past six months only tell you about this market…right now.

So I always try to back away and look at the big picture to gain perspective. A good home has much more value than what can be gleaned through an analysis because it brings enjoyment to its occupants and it may provide a place to come home to for a decade or more. I sometimes see buyers trying to fit a square peg into a round hole because they just haven't found the right house yet and they start making the wrong compromises. But I can't think of too many decisions more important than where we live (aside from who lives there with us!).

You should, of course, dig into the data and understand what you're buying. You have to consider things like:

What have similar homes sold for nearby?
Where does this home fit into the range of sale prices in the neighborhood?
What was the last sale price of the home?

But more importantly, ask yourself:

Would I enjoy walking around the neighborhood?
How long could I live here?
Where would I put all of my stuff, including my family members?!
How does the house feel?
Does the payment make sense considering our financial goals?
How will this home weather a down real estate market?

Four years ago, when our market was in the toilet, a local blogger (and former co-worker of mine) named Tim Ellis wrote great a post on his blog, Seattle Bubble, about "the right time to buy." In it he wrote:

"There is never “a great time to buy.” There is only “your time to buy.'"

This sentiment is true for values as well. While we can take a big picture look at neighborhood data and nearby sales, what matters more is whether a home is right for you.