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Don’t Do This

Posted by Johnine Larsen on April 29, 2015
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Don’t do this:

  • Don’t pay $717,000 for a 3-bed, 1-bath house.
  • Don’t pay $158,000 above asking for a 1,100 sq-ft home.
  • Don’t pay $640 per square foot in Ballard.

These are the actions of a crazy buyer in a crazy market, a result of desperation and hypercompetition. Don’t do this.

But someone did.

This week, a 1959 Ballard home sold for $717,000. The house was completely remodeled, and it had a great location in Whittier Heights–but a 3-bedroom like that should never have sold for $158,000 above its listing price. Thirteen different parties made offers on that house, originally listed for $559,000. Johnine represented one of those would-be-buyers, but she advised her clients to limit their offer.

“Don’t go higher than $605,000,” Johnine said. “Any higher isn’t sustainable.”

Because, as it turns out, when that house was appraised, its value was established right in the middle of the $600k-$700k range. The party who “won” the bidding war ended up in a hole. A deep hole.

And what’s even crazier? The buyer who paid $717,000 would have paid even more; they had a backup offer in place for $730,000. Don’t do this.

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This is a crazy market, and tensions are running high. Buyers want a house; people are getting desperate. With record-low inventory, parties are sacrificing everything to get real estate.

But no matter how bad things seem now—no matter how much you think you need a home right now, don’t ruin your future. Don’t be crazy. Don’t do this.

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Our best advice:

If you’re a buyer, find a real estate agent. We’ve seen market fluctuations before. We keep our heads in a multiple buyer scenario. We’ll keep you out of trouble in this crazy market, and we’ll be a steady, calming hand throughout the home-buying process.

Don’t panic.

Keep it real.

And talk to us.