Wednesday, November 11, 2015
One place to look is at expired listings this time of year. These sellers have given up for the winter, and many will wait to re-list until the spring.
There are 33 single family home listings in Seattle that have expired in the last 30 days. Nine of these are priced less than the median home price of roughly $500,000. These homes would be more affordable to working-class buyers.
All of these nine homes are located south of interstate 90. Asking prices ranged from $240,000 - $485,000. Clearly, there is less demand for homes in this location of Seattle. But typically, homes don't sell because they are priced too high for the demand in that area. What if a purchase could be negotiated for a better price?
All but two of these listings had dropped the price at least once, having started out far too high for the market. One actually increased the list price, for some unknown rationale.
The home that had been on the market the longest had been listed for 197 days. Not surprisingly, this is the one where the Seller never dropped the price. This Seller may be more motivated to sell at a lower price now, after a long time on the NWMLS in one of Seattle's hottest markets.
One of these nine homes is owned free and clear, and it had been listed for 186 days. So it may be possible to negotiate seller financing on a purchase, at a lower price. The price had been dropped once to the last asking price of $450,000. Realist puts the estimated value at $355,000 and Zillow puts it at $411,000, so it is very clearly over-priced for the market.
As an investor, I might start an offer to this Seller for full price, Buyer to pay all closing costs (deducted from the purchase price) with 0% interest spread out over 360 months. That would make monthly payments approximately $1213 per month. Rent for this property is estimated at $2000-2200/month. Yes, in fact, I think I will submit that offer today....