Equity Is At An All-Time High – Align With Those Who Can Net You The Most

2022 has had an unprecedentedly powerful start in Western Washington’s real estate market. In March, the average list-to-sale price ratio (the percentage a house sells for in comparison to the list price) was 113.6% in King County and in Snohomish County it was 112.5%. This is in tandem with year-over-year median price appreciation (the last 12 months of price growth averaged and compared to the previous 12 months of price growth) of 13.3% in King County and 25.7% in Snohomish County. In fact, the stats show that 59% of homeowners in King County have over 50% home equity and 55% of property owners in Snohomish County have more than 50% home equity.

That said, how do you navigate successfully transitioning that equity to your next move, and who do you choose to help you with the job? With inventory near all-time lows and interest rates still rising past 5%, buyer demand is high but slowing. There is no denying that homes can sell quickly in this environment and often for over-list price due to more than one offer. In this market, there are a variety of business models to choose from for consumers when selecting who they wish to align with to help them make such an important move; there are brokerages that will provide basic services while offering an up-front discount on the commission and there are full-service brokerages, with everything in between.

Before we highlight what a full-service brokerage, like Team Covington, has to offer a seller we want to show you some numbers rooted in seller results. In 2021, our office, Windermere Woodinville, outperformed the market – we sold homes faster and at a higher return!

Even as we track our statistics so far in 2022, according to NWMLS data, our office’s median list-to-sale price ratio for King and Snohomish Counties combined, for residential sales, was 105.1% and 14 days on the market. This compares to the average market results of 101.5% and 21 days on the market.

Our approach involves a strategic listing preparation process, detailed rolling price analysis, and keen negotiations. You may be wondering what type of negotiations happen when a seller is reviewing a stack of offers; actually, more than you know. Sifting through the terms of offers multiple times and vetting the buyers through research, and rapport-building with their broker and lender helps us to investigate who the most qualified buyer is to get under contract with. This takes extra time and skilled communication, but as you can see, these extra steps more than pay off for our sellers.

We understand that getting your home ready for market can be an intimidating task, but the upside is too measurable to ignore. We help our clients to identify a checklist of prep items and match them up with vetted concierge-level service providers to help them complete the work. Even if our sellers are limited in funds to ready their home, Windermere has funds available for no up-front costs. Please reach out if you think this would fit your needs.

Then, depending on the house, the merchandising comes in: proper staging, professional photography, video, floorplans, print materials, comprehensive online advertising, open houses, reverse prospecting, and public exposure is fully planned and executed. Our listings hit the market perfectly positioned for buyers to envision themselves living there and we invest in this on behalf of our sellers so they may achieve their goals. We help connect the emotional dots that invoke buyers’ lifestyle goals resulting in higher returns for our sellers.

Finally, perspective is key! Markets are always shifting: ebbing and flowing. Pricing a home is strategic and requires analysis of the recent sales, historical seasonality, and knowledge of the current local and overarching market trends. This research isn’t just done by poring through data, but also with daily experience in the market and the intangible outreach to fellow brokers inquiring about their experiences and gleaning conclusions. In addition, physically touring the inventory, whether we’re showing buyers or walking through to see for ourselves, helps us understand how a home measures up and what buyers are looking for. All of these steps are far and above the norm and help contribute to the results our office is producing.

If you are considering a move, make sure you align yourself with trusted advisors who are willing to put in the extra work to get you the best possible results. Navigating an ever-changing and extreme sellers’ market takes great skill and care to achieve the best results. When done right, that skill and care will beat out any upfront discount a less-engaged broker will offer to win a listing. Make sure you consider the big picture, your net gain, and not just an immediate reward. Understand that who you choose to partner with to assist you with one of the biggest financial decisions a person can ever make is a very big deal. It is always our goal to help keep our clients well-informed and to empower strong decisions. Please reach out if you think we can help you or someone you know, whether you are just curious about the market or you’re ready to make a move.