photo credit: ecstaticist
The Seattle Times published an article last weekend about the influx of buyers into Vancouver from Mainland China. Although our neighbor to the north may be seeing more of these buyers, we are definitely seeing the same phenomenon here in the Seattle area. As a Modern specialist, I often have a lot of Asian buyers at my open houses as they are one of the groups, along with techies and creative types that seem to be drawn to this style of architecture. It got me thinking about some of the trends I am generally seeing in the marketplace these days.
Chinese Buyers
As the Seattle Times article indicated, the Chinese are looking for investment properties or part-time residences. They are moving their money out of China as speculative buying of real estate is making homes unaffordable and susceptible to a bubble like we have seen here in the States. It seems that many are buying for children or family members to live in or to keep as part-time residences. Newer Contemporary Modern homes tend to really appeal to many in this group but Mid-Century homes do as well.
Multiple Offers
This is true of all homes in the downtown core areas of Seattle and Bellevue. If a home is well-priced and in good condition, it sells quickly and often there are multiple offers. This is especially true with Mid-Century Moderns, due to the lack of available inventory.
One interesting note to this is that even though buyers are in multiple offer situations, we still see offers coming in less than list price. This is a definite departure from the multiple offer, the sky is the limit, craziness of years past. I have had agents submit low offers but all the while telling me to counter if it is too low. Well, it doesn’t always work that way. In most cases, the one that makes the offer closest to or over list price, gets the home. Take-away, if you really want the home, can’t live without it, put your best foot forward. It is very unlikely that a home will be bid up over market value (not the same as list price), we just don’ t have that kind of blind frenzy anymore. If it does, the appraiser will put the kabosh on that!
Back-up Offers
Honestly, I am not sure if this is really a trend. It may just be me but I am curious to know if other agents are seeing this too. The scenario usually goes something like this: Buyer One tours home, loves home but decides to keep an eye on it to see if the seller gets “more realistic” about the price. Buyer Two comes in, falls in love with home, and smartly, decides to write an offer on it. Home goes pending and now Buyer One’s agent is calling frantically wanting to know if the deal “looks firm” and can they write a back up offer? I have had this happen a couple of times recently, hardly a trend, but it makes me wonder if the watch and wait buyer mentality of the last few years is becoming a hinderance to those wanting to get into a home. The smart buyer will write a fair offer on a great home quickly.
These are just personal anecdotes of what I am seeing in my own business. I would be curious to know if anyone else is experiencing similar situations.
