How can I buy a house in Seattle when I'm up against 3 other offers?

By
Managing Real Estate Broker with Realty One Group Preview 6694

Tis a whirlwind frenzy in North King County and Snohomish county. Bothell, Kirkland, Lynnwood, and Shoreline homes are getting snatched up in the first few days of going on the market. Appreciation over the last year has increased from 19 to 30 percent depending on location. My John L. Scott office had 17 offers on a recent listing in Lynnwood a couple of weeks ago. You need to have all the ammunition you can when competing against multiple offers.

Should I remove my inspection clause to be a cleaner offer?  Should we add an escalation clause that alerts seller that I will beat any other offer by $1550 to a maximum sales price of $396,000? Asking price is $375,000 but bidders will push it past $405,000. Ok how about we do the escalator but bring in the offer for $355,000, but bump the escalator to $415,000. If we get stuck at the high end we will at least be in 1st position and then we will wittle the seller down again with an extremely in depth inspection response outlining all the major defects. 

In Kirkland a couple of weeks ago we beat out 4 other offers by being first on the table, quick to the draw and a $25,000 earnest money check attached to a personalized plea from the buyer with a photo of their "Leave it to Beaver-Like" family photo. Really????? Seriously you say? I guarantee you every trick in the book is necessary to outwit the wiley Kirkland Brokers with their auction ready buyers.  You mainly need to be extra quick in Shoreline as there is none of this "Let's think it over Honey" time allowed - boom 7 offers on the table and 2 more coming in before 6pm.

Lynnwood real estate is slightly more traditional than Bothell and Kirkland but those Brokers in South Everett (home of the big hair) have all been around the block a few times too. You can't underestimate their stealth & conniving  technique - you know -those country bumpkins with their cute yellow jackets and retro hair styles from Oh.....1958 to 1974. I'm pretty sure the look is to lull you into a confused state while their partner finishes up the signatures within the 1st 4 hours of the property being listed.

Who ever saw this coming a year or 2 ago.......... Gosh Wally, you think maybe Whitey or Lumpy could chip in some of their allowance to help mom and dad buy the Haskell's summer cabin?  OK ready set - dive in - interest rates are rising, appreciation on your highly leveraged asset (The American Dream Home) can return you $30 to $45,000 of equity in the first year with only a 3 1/2 to 5% down payment.  Yes - a 5% down payment on a $300,000.00 home is returning over 200% not even considering the thousands upon thousands of dollars of tax benefits each year.

Yee Haaww - hurry and get on board this circus of a real estate environment in Bothell, Kirkland, Lynnwood, or Shoreline so you can have some great stories to tell at the water cooler. Grab yerself a real live Reel It Tore and git yerself Prima Qualified so that you and yer kin can settle in before the floods come. In Everett, Lynnwood or Bothell your home can be rented out for more than your monthly payments. Play your cards right in Kirkland and maybe you can buy off the courthouse steps for 70 percent of market value at the foreclosure auction.  Sometimes the taxes are even paid up a year in advance!!!! I hope to see you out there in the jungle my friends and competitors - Lets just try to keep it real as long as we can !!!!

Comments (2)

Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Tom - It's been a bit crazy for the last several months for sellers.  It can be hard to compete.

Jul 10, 2013 04:58 PM
Richard Weeks
Dallas, TX
REALTOR®, Broker

The Texas Real Estate Commission has prohibited agent here from using escalation clauses.

Oct 22, 2013 10:12 PM