The $8,000 tax credit is working it's magic. Buyer are getting off the fence and getting into the market. Which is great news!

But some Pierce County, WA sellers (specifically Bonney Lake, Sumner, Buckley, Orting, and others) need to be aware that even with this increase in buyer traffic, it is still a buyer's market. And to make matters worse, it is a declining market. Currently the NWMLS is tracking the rate of of decline at .9% per month.

So if you want to sell your home, it's not the time to say "the house down the street sold for X dollars, therefore, my home is worth that too." Because if the neighbor's home sold a few months ago, it's not. Current residential appraisal guidelines state the condition of the market; whether it's appreciating, or stable, or declining. And if the declining box is checked, banks expect that a time adjustment is made in the value of the comp. (for example, if a house sold in March for $299,950 then today's adjusted value would be $289,151. Four months x .9 = 3.6. $299,950 x .964 = $289,151 )

And if the buyer is using government financing (which 90%+ are these days) then the appraisal situation can get even stickier. VA appraisals stay with the property for 6 months. So if your first offer falls apart because of a low VA appraisal and you are unwilling to lower the sales price to the appraised amount- it will eliminate all VA buyers unless they have the cash to make up the difference between list price and appraisal price.

So the tough decisions sellers need to make are-

• do I really want/need/have to sell? 
• what do I have to do/can I do/will I do to make that happen?
• what will I do if the appraised value comes back less than the list price?
• am I willing to let a deal fall apart? Can I handle it?
• can I wait for another offer?

Thinking about the answers to these questions will help you decide if now is the time for you to sell your home or if it is better to wait until the market has stabilized.

If you have any questions about your home in south King County or north Pierce County, contact me.

Debi Braulik, Realtor, Keller Williams Realty

Cell- (206) 949-4785, email Deborah@KingPierceHomes.com