Here’s how inflation will impact the real estate market in 2022.

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Inflation is the topic of many conversations these days across all industries, including real estate. Today I have a quick update on how this rising inflation will affect the real estate market.

With inflation on the rise, we expect to see increases in rent across the board. If you’re currently renting, this could be a big problem.

On the flip side, home appreciation has consistently beat the rate of inflation over the last 50 years according to the National Association of Realtors. Inflation is better for you as a homeowner than as a renter. Your rent will go up, but if you’ve already purchased your property, your equity will increase while your monthly mortgage payment remains flat.

"Inflation will put more pressure on our housing shortage."

Inflation also affects the cost of building materials. We’ve already seen a rise in costs because of material shortages over the last couple of years, and that’s only going to go up with our record-high inflation. This is going to make new homes much more expensive and cause delays in the process. That will put more pressure on the housing shortage that’s already an issue in our area.

Considering both of these factors and the rising interest rates we’ve seen so far in 2022, it’s pretty clear that homeowners are going to be in the best position to hedge against inflation over the next few years.

If you have questions about inflation, buying a home, or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Three tips to help your offer stand out to sellers in this market.

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We’re in an extremely competitive market right now, so today I’m sharing how buyers can still set themselves apart and win a home. Much of what you do will depend on the property you’re trying to buy, but here are three tips that will help every buyer:

1. Work with a great lender. Sellers will be looking to see if you can close on time and get the money you’ve promised. Working with an excellent lender who’s on top of communication, has all their ducks in a row, and has a good reputation will make a massive difference in whether the seller chooses your offer or another.

2. Consider waiving contingencies. Each situation will be different, but if you can do much of your due diligence before you write the offer and feel secure in waiving some contingencies, you’ll be in a better position to purchase the home and get your offer accepted. Consult with your real estate agent about this because you also need to know the risks involved.

"There are many ways you can make your offer more appealing to sellers."

3. Remember that cash is king. Don’t worry; it isn’t crucial that you purchase the house with cash. However, if you have extra cash, you can use it to make your offer stronger. For example, you can submit a larger earnest money deposit and allow the seller to have it sooner in the transaction. Another thing you can do is offer more cash above the appraised value.

Both of these come with some risk, so again, consult with your agent to see if they make sense for you. However, these two things often help buyers win in the current market.

The bottom line is that there are many ways you can make your offer more appealing to sellers. Our market is very competitive these days, and you don’t want to write 20 offers before you get one accepted.

Feel free to reach out via phone or on my website if you have any questions or want to discuss these strategies further. I would love to be your real estate resource.

Three reasons why 2022 will be another strong year for real estate.

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Will the market slow down this year? I get this question all the time, and the answer is a solid no. It looks like 2022 will be another strong year for real estate, and there are three reasons why:

1. The market is still strong despite interest rate increases. When interest rates go up, buyers lose buying power, and demand usually drops. However, despite two increases already, the market has stayed incredibly strong.

2. There is a lack of inventory. I’ve been singing this song all last year, but it remains true. We would need to triple our inventory to service all the buyers in this market.

3. Sellers aren’t pressured to sell. If something forced sellers to list their homes, that would bring a lot of inventory to our market, and maybe the market would start to balance out. Right now, there isn’t any such pressure that would force sellers to go to market. 

It looks like 2022 will be yet another strong year for real estate. If you’d like to talk about what this means for your home’s value or discuss strategies to help you buy a home, feel free to call or email me. I would love to help.

These are the three biggest advantages of investing in real estate.

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Today I’ll discuss the advantages of investing in real estate. The first advantage is cash flow. The amount of cash flow you’ll get from a property is something you should be looking for when you're buying an investment property. Having a cash flow that covers expenses and leaves some in your pocket allows you to hold on to that property in the long term and stay financially stable.

The second advantage of real estate investing is equity. You're building equity through two different mechanisms: by paying down your mortgage every month and the growth in the market.

The third advantage of real estate investing is that you’ll have a larger position than the amount of cash you put down. You'll only be putting 20% or 30% down on an investment property, but when the market grows, you'll be receiving equity of a much larger sum than the investment.

If you'd like to talk more about real estate investing and how it might fit into your financial future, please feel free to reach out to me by phone or email. I look forward to hearing from you.

Here’s my advice for buyers who find maintenance issues with a home.

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Home inspections can be anxiety-provoking for buyers. After falling in love with a home, the last thing you want is to find issues with it. However, some problems (even large ones) are more concerning than others, so today I’m discussing which ones you can walk away from and those you should make sure to repair.

If a water heater or furnace needs to be replaced, you’ll know how much that will cost you, and you can budget for it. On the other hand, when you run into a problem and you can’t tell how serious it is, you may want to be a little more hesitant about following through. One example is water intrusion; if you’re finding water leaking into the basement or crawl space and don’t know where it’s coming from, you likely can’t predict what will be needed to fix the issue. The problem isn’t that it could be an expensive fix; the problem is that you just don’t know what it will cost, so you don’t know how much to ask the seller for or to budget to mend it.

Some homes have been updated cosmetically, but the seller hasn’t kept up with maintenance. For example, it has an excellent kitchen, but the roof needs major repairs or needs to be replaced. These homes can be very attractive and make people forget the other costs they’ll incur after they purchase them. I caution buyers to consider homes objectively and think through the costs of any maintenance items needed.

The moral of the story is to get a home inspection. It’s better to get into a situation knowing as much as possible so that you can plan for it, rather than going in blind and hoping for the best. If you need a great home inspector, I have contacts I can recommend. Don’t hesitate to reach out via phone or my website if you need anything or have questions. I would love to help you.

Here are three reasons why we’ll see a strong market in the new year.

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Why were the holidays busier than usual, and what does that mean for 2022? Traditionally, we don’t see much activity during the holidays because people are more interested in seeing their families. However, our market didn’t slow down much in 2021, and there are three good reasons why. These reasons also tell us why our market will keep growing in 2022:

1. Our market is still tight. There are a lot more buyers than sellers. Those buyers kept looking through the winter, but many still haven’t found what they’re looking for; they’ll continue to look in the new year.

2. Our interest rates are low. Buyers want to take advantage of this while they have the opportunity, so people will be looking to buy a home at the start of 2022.

3. Businesses are still hiring. When people have a job, they need a place to live. Often, that means buying a home.

These three factors pushed through a traditionally slow period, and they will keep elevating the market in 2022. If you’re wondering how your home fits into today's market, give me a call. I would love to schedule a one-on-one conversation with you.

From our team to your family, we want to wish you a happy holiday season.

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Happy holidays to you!

The holiday season has officially arrived. We hope you enjoy this wonderful time of year and make some fantastic memories.

We wanted to take a moment to thank you for your continued support. We love helping people make their real estate dreams come true, so thank you for working with us and supporting our business.

This may be a busy time of year, but we are always here to help you and answer any questions you may have. Give us a call or reply to this email; we’d love to help you. 

In case we don’t hear from you until 2022, have a happy New Year!

Here’s what you need to know about the Seattle area real estate market.

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Clients ask me all the time, “What’s happening in our real estate market?” Today I want to answer that question in my latest market update.

If you’ve been paying attention, you know we’re still living in a hot seller’s market. This is mainly due to our historically low inventory. In my seven-year career, I’ve never seen inventory as low as this. Over the last year, inventory is down 31% in Snohomish County, and it’s down 44% in King County.

"With our historically low interest rates, it’s still possible for you to get a great deal."

What does this mean for you? If you’re looking to buy, you need to make an aggressive offer upfront. Meanwhile, sellers will come to the table from a strong negotiating position. You can expect to receive multiple offers, so make sure your agent knows how to handle this situation.

If you’re a buyer, don’t get discouraged. With our historically low interest rates, it’s still possible for you to get a great deal. They are just under 3%, so your mortgage payment will be low even on a pricier home.

The winter months are usually tight on inventory, and the spring will be competitive. The market doesn’t look like it will ease up for buyers anytime soon, so give me a call and work with an experienced real estate agent who knows how to navigate our tough market. I look forward to hearing from you!