Bainbridge Island Real Estate :: SoundBiteBlog.com

A while back, I wrote an article entitled, “Putting the Cart before the Horse: Making a Contingent Offer.” It was written specifically to advise Buyers on the pro’s & cons of writing a contingent offer. This time, I thought I would offer up some helpful counsel for Sellers on how to respond to contingent offers.

Looking at Webster’s definition of the word, ‘Contingent,’ I’m wondering which one is most accurate/applicable? 

1 : likely but not certain to happen : POSSIBLE
2 : not logically necessary; especially : EMPIRICAL
3 a : happening by chance or unforeseen causes b : subject to chance or unseen effects : UNPREDICTABLE c : intended for use in circumstances not completely foreseen
4 : dependent on or conditioned by something else; contingent on fulfillment of certain conditions
5 : not necessitated : determined by free choice

While I know that #4 is obviously the correct answer, as being relevant to real estate, some of the other definitions could certainly apply as well. But just so we’re all on the same page here, a ‘Contingent‘ offer is when a prospective Buyer submits a contract offer on your home, but their offer is ‘contingent‘ or ‘dependent/conditional‘ upon the sale of their current residence. 

In a slowing market, such as we’re experiencing here now in Kitsap County WA, contingent offers become more commonplace. Conversely, in faster, brisk Seller’s markets, you rarely see them being employed because they are quickly bumped by other competing offers.

As the market cools, and the inventory of available homes increase, Sellers are more willing and motivated to consider ‘contingent‘ offers.

As a Seller, what are the risks associated with accepting a ‘contingent‘ offer?

Well, first and foremost, here in our market area, when you accept a contingent offer, the status of your property changes in the NWMLS (Northwest Multiple Listing Service). Your home goes from being an ‘ACTIVE‘ listing to being a ‘CONTINGENT‘ listing. As such, your home is shuffled down towards the bottom of any property searches being performed by Agents accessing the NWMLS. This will effectively reduce the amount of valued exposure your home will receive.

When submitting a Contingent Offer using NWMLS Form 22B, the default contingency period is 45 days. This is the timeframe your Buyer has to get their property under contract with a viable Buyer. If another interested Buyer for your home comes along during this period, they can ‘bump‘ the first Buyer. By default, Buyer #1 has 5 days to either remove their contingency or back out of the contract, allowing Buyer #2 to proceed forward with their offer. In some instances, Sellers may tighten up or reduce these default timeframes, just to help ensure that their property isn’t tied up for an excessive period of time. Once you have reached the end of the contingency period, you can either negotiate an extension with the Buyer, or simply allow the contract to expire, releasing both parties from their obligations.

Some questions you’ll obviously want to have answered prior to accepting a contingent offer:

• Where is the Buyer’s home located? What is the market like there?
• Is the Buyer’s Home currently up for sale? If so, how long has it been on the market?
• Is it listed by a licensed real estate professional? Is it priced aggressively, according to market value?

One word of caution here: With all of the recent challenges being faced by the mortgage industry, make sure that your Listing Agent stays in constant contact with your Buyer’s Agent during the contingency period. Loan programs can change overnight. You’ll want to ensure that once their property is under contract, that they can still qualify for the purchase of your home.

A Contingent Offer is better than NO offers, especially when there are so many other competing properties for sale on the market. Just make sure that you’re making intelligent and informed decisions, and that the potential benefits outweigh the risks.

Bookmark this article to:

Posted in Bainbridge Island Real Estate, Bremerton WA Real Estate, Buyers, Gig Harbor Real Estate, Port Orchard Real Estate, Poulsbo Real Estate, Real Estate Bites, Sellers, Silverdale WA Real Estate | 13 Comments »

We hear it on the news as we’re getting dressed. We read it in our morning paper. We hear it being discussed while standing in line at Starbucks, or around conversations at work. The dark clouds of Doom have been spreading across the country, hitting us from all sides….

“The Real Estate Sky is Falling!”    “The Real Estate Sky is Falling!”

You hear something over and over long enough, it’s hard not to start believing it yourself. As a licensed real estate professional, I don’t buy into the seemingly dismal market heresay and all the water cooler speculations. But there are times when I find myself being affected in small, subtle ways. The ever-positive ‘Can-Do’ attitude begins to weaken slightly and wane. Suddenly you find yourself beginning to cringe whenever one of your Sellers call. Your usual air of confidence isn’t as convincing as it usually is. Your historically effective flurry of marketing efforts bears no fruit. Your Listings languish. Days on market becomes a curse, rather than a testimony.

Welcome to a Slow Market.

“Is the Sky truly Falling?”  No, of course it isn’t. It’s the proverbial ‘Ying & Yang’ of the real estate business. The perpetual cycle of peaks and valleys. A continuum of self-correction and balancing. How long will it last? No one knows. Will it get any worse? Again, no one really knows for certain.

However, one thing IS certain. One of the most predictable constants in the wild world of real estate is that people will need to move. There will always be Buyers and Sellers. Regardless of rates, regardless of prices, regardless of market variables, people will need to move.

In the majority of residential transactions, someone will represent the Seller, and someone will represent the Buyer. Who do YOU want to represent you? Someone who is standing under a dark cloud crying “Wolf!” Or someone who is optimistic and positive? Someone who understands the dynamics of a slow market and embraces the challenge?

Success begins with the proper attitude. Don’t allow Henny Penny, Ducky Lucky, Goosey Loosey, and any other doom-sayers to negatively influence your perception of the market.

The sky ISN’T falling. It’s simply filled with opportunities!

Bookmark this article to:

Posted in Bainbridge Island Real Estate, Bremerton WA Real Estate, Buyers, Gig Harbor Real Estate, Port Orchard Real Estate, Poulsbo Real Estate, Real Estate Bites, Sellers, Silverdale WA Real Estate | 6 Comments »

Real Estate Market Report/Conditions in Kitsap County WA for 09/02/2007

The following is a quick analysis of the combined single-family home and condo market within Kitsap County, Washington for September 2007, provided by Rich Jacobson of Windermere Real Estate, in Silverdale, WA (excludes Bainbridge Island).

• Properties currently active on the market: 2158
• Properties closed in the last 180 days: 1749
• Average Sales Price: $312,461
• Average List Price: $342,534
• Ratio of List Price to Sales Price: 96%
• Average Days on Market: 87
• Sales Pending this Week: 45

Current Market Conditions: The highest ratio of List Price vs. Sale Price was 101% for Area 141 (South Kitsap West of Hwy. 16).  The lowest ratio was 73% for Area 168 (Indianola). Shortest Days on Market (DOM) was Area 150 (E. Central Kitsap) with 59 DOM. Area 146 (Chico) was 2nd at 67. Longest DOM goes to Area 163 (Port Gamble) with 149, and 2nd longest is Area 162 (Kingston) with 105.  Overall inventory dropped slightly, and sales increased as well. Certainly a more optimistic indication that the market may be stabilizing somewhat.

For Buyers: Now is still a great time to consider purchasing a home, especially for 1st Time Home Buyers. The current rate this morning for a 30-year Fixed Rate loan is just over 6% just under 6.00%! (edited by Mark) With the number of available homes on the market, Buyers have more choices and greater negotiating room.

For Sellers: Make sure that you’re priced aggressively and that you and your Listing Agent are working closely together as a team, doing everything you can to position your home Head & Shoulders above the competition.

Two of my most recent listings are both great values! A lovingly remodeled Turn-of-the-Century Charmer by Island Lake (13110 Lakeview Avenue in Poulsbo), and a stunning Craftsman Puget Sound View home (22829 Jefferson Point Rd. in Kingston). Call (360) 440-4758 for more details or to arrange a private showing!

For additional information and resources concerning real estate and living in Kitsap County, Washington, access my comprehensive website, www.KitsapLife.com.

Bookmark this article to:

Posted in Bainbridge Island Real Estate, Bremerton WA Real Estate, Buyers, Gig Harbor Real Estate, Port Orchard Real Estate, Poulsbo Real Estate, Real Estate Bites, Sellers, Silverdale WA Real Estate | 2 Comments »

A recent article in our local newspaper, the Kitsap Sun, written by Josh Farley, highlighted the apparent surge of growth in the condo market here in Kitsap County, WA. In the article, Mr. Farley reports that median condo prices in Kitsap County have soared dramatically from $186,450 a year ago up to $320,075, a 72% increase (according to numbers from the Northwest Multiple Listing Service).

Let’s not forget that these numbers are heavily scewed by several upper scale projects on Bainbridge Island (over $1M on units near the marina) and some waterfront developments in Bremerton (upper $800K+).

There’s no doubt that condo sales, in general, have been on the increase, both here and in the greater Seattle area. And, as a result, the number of apartment complexes which have been converted to condos has increased as well.

I myself, have been recently representing a Seller who purchased an 8-unit apartment complex in Bremerton a few years ago and converted them to condos. She did an excellent job coordinating the remodel, electing to offer numerous upgrades and quality finishes, rather than the typical ‘band-aid’ fix one sees so often. The units were priced very aggressively, and all but one unit has sold to date.

However, one of the primary reasons for increased condo sales that was missing from the article was the fact that buying and owning a home these days has become extremely difficult, especially for first time Buyers. The current average sales price for Single-Residence homes here in Kitsap County (excluding Bainbridge Island) is nearly $340K. With the harsh reality of payscales not keeping in pace with increased valuations, condo purchases are one of the few viable alternatives for home ownership.

Just a few years ago, there was a plethora (thank you, Three Amigos!) of inexpensive, lower-end homes in Kitsap County, especially in West Bremerton. You could easily find something in ‘Move-in’ condition under $100K. Nowadays, the only thing under $100K is a pre-1978 single-wide out in Tahuya without utilities! (if you live out in Tahuya, I mean you no disrespect).

For the longest time, I’ve been somewhat mystified with the sales of the new waterfront condos in downtown Bremerton. Now, don’t get me wrong. I have the greatest respect and admiration for Bremerton Mayor, Gary Bozeman. Mayor Bozeman has almost singlehandedly lead the charge for a major rennovation and resurgence of downtown Bremerton. And, for all intents, his vision has been slowly coming to fruition.

But for someone to pay over $800K for a condo in West Bremerton? Now there is some really amazing salesmanship! That, or some really gutsy Buyer/Investors!

Look for more condo conversions here in Kitsap County in the near future. People want to have their own piece of the rock, but they don’t necessarily want to pay for ‘diamonds!’

For additional information about condos, especially in the greater Seattle area, go to The Seattle Condo Blog by Ben Kakimoto. Ben is one of the premier resources for condo real estate in the Seattle market.

P.S. This article is dedicated to Mike Mueller of Patagonia Finance in Walnut Creek CA. Had enough Teriyaki yet?

Bookmark this article to:

Posted in Bainbridge Island Real Estate, Bremerton WA Real Estate, Buyers, Real Estate Bites, Sellers | 2 Comments »

Real Estate Market Report/Conditions in Kitsap County WA for 08/02/2007

The following is a quick analysis of the combined single-family home and condo market within Kitsap County, Washington, provided by Rich Jacobson of Windermere Real Estate, in Silverdale, WA (excludes Bainbridge Island).

• Properties currently active on the market: 2199 up 4.7%
• Properties closed in the last 180 days: 1652 up 5.5%
• Average Sales Price: $309,118 up 1.1%
• Average List Price: $313,008 up .09 %
• Ratio of List Price to Sales Price: 99% same
• Average Days on Market: 85 days down 4.5%
• Sales Pending this Week: 69 up 36%

Current Market Conditions: Well, as you can see from the monthly stats update, inventory continues to increase. Fortunately, so have home sales. The pendulum has clearly swung over towards the Buyers favor in most areas of Kitsap County WA. Personally, as a professional licensed agent, this is a market dynamic I much more prefer. My Buyer clients have more time to shop and make prudent/wise home purchasing decisions. As a Seller’s agent, it requires greater effort and creative marketing ability to successfully achieve a timely sale. Many newer agents who jumped on the ‘Hot Market’ bandwagon are going back to their former jobs. A slower market definitely separates the career agents from the ‘wannabes.’

Last month, I offered some practical advice to prospective Sellers. Here it is again:

• Conduct a pre-sale home inspection. Anticipate and correct any problem issues ahead of time.
• If you’re on a septic, go ahead and have it pumped and inspected. Place of copy of the receipt and inspection results in the Home Book.
• Depending on the age of your home, offer a Home Warranty Plan to prospective Buyers.
• Consider having your home staged or hire a staging consult to give you some suggestions.
• Price your home aggressively.

One of the best values on the market right now is my listing on 7236 Hillridge Place. It’s a great newer home (2005) off Bielmeier Road in Port Orchard. The 4BR (3BR septic) 2586 sq.ft. Craftsman-style home is situated on a 1/2 acre lot on a small private cul-de-sac with 5 other custom homes. Call (360) 440-4758 for more details or to arrange a private showing!

For additional information and resources concerning real estate and living in Kitsap County, Washington, access my comprehensive website, www.KitsapLife.com.

another quality consumer article by Sparky

Bookmark this article to:

Posted in Bainbridge Island Real Estate, Bremerton WA Real Estate, Buyers, Gig Harbor Real Estate, Kitsap County Bites, Port Orchard Real Estate, Poulsbo Real Estate, Real Estate Bites, Sellers, Silverdale WA Real Estate | 3 Comments »