In recent weeks the news media have been bashing real estate. True, some markets (such as Detroit, which is suffering from the decline of the automakers) are plummeting. But the market here in Kitsap County continues strong. For buyers, the increased inventory is very good news.
- Selection, selection, selection. There are about over 2100 resale homes on the market in Kitsap County. Regardless of the price range a buyer desires, there are plenty of houses from which to choose. Just a few years ago the resale inventory was much smaller. Buyers were forced to make compromises if they were going to locate the home of their dreams. There is a great selection of attached homes, condos, and townhouses. You can find large lots, small lots, and a lot that will accommodate your boat or RV. There are lots of options in this market.
- No bidding wars. In 2005 one client in Seattle made an offer on ten homes. He lost the first nine to the 'feeding frenzy' that existed. Other buyers bid the properties up substantially from the original listing price. There were escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There is no competitive bidding in this buyer's market.
- You can make an offer. A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today the sell price list vs. price ration is about 96%. A seller will not be insulted if you 'make them an offer they can't refuse'.
- Patience is tolerated. In the hot seller's market that existed everything was rushed. Find a house before other buyers did. Hurry up and make the offer. Today a buyer can take their time. Look at several homes and think about your decision for a few hours.
- Due diligence is welcomed. In this market a buyer is encouraged to obtain a home inspection, pest inspection, and appraisal. In 2005 many buyers waived these contingencies in order gain an advantage with multiple offers.
- There are plenty of specs. In the not-too-distant past buyer had to 'play games' if they wanted a new home. In Phoenix, for example, there were lotteries and waiting lists in order to obtain new construction. Some buyers slept in their cars in order to get to the head of the lines.
- Repair requests are welcomed. After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might insist the home was sold 'as is'. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.
- Few, if any investors. It is estimated that in some areas, one third of all sales in 2005 were to investors. These non-owner-occupied buyers caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.
- Location, location, location. Bainbridge Island is still the location of choice for professionals working in downtown Seattle. Poulsbo, Bremerton and Silverdale are ideal for navy personnel. The whole county is still a jewel in the USA crown.
- Real financing is available. The 'wink, wink' zero down, no doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, first time homeowner bond programs, special loans for teachers, and police officers are back in business. It's a great time to buy real estate!
by Paul Pastore and Paul J. Pival
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