The median price of a single-family home in Snohomish County set yet another record in August – this time soaring well above $300,000.
The new record, $311,525, contrasts with the $252,000 median price of a year ago, an increase of nearly 24 percent, according to a report issued by the Northwest Multiple Listing Service.
An improving economy, relatively low loan rates and a 19 percent drop in the number of homes available last month contributed to what has been a seller’s market throughout the summer.
Median condo prices also rose, from $169,000 in August 2004 to $189,975 last month, a 12 percent increase. The combined median, for both single-family homes and condos, was $296,725 in August, up 23.4 percent from the $240,500 figure of a year ago.
What’s a buyer to do?
Here are some tips from real estate agents to help buyers cope and compete in today’s hot housing market:
Get pre-approval. Get lender approval before you shop for a home. Sellers favor pre-approved buyers because it’s less likely the deal will collapse.
Form a strong team. Select an experienced real estate agent, lender, home inspector, title insurance agent and closing agent, hopefully people who have worked together before. An experienced agent can help you evaluate the home and shape a competitive offer. A lender can provide a pre-approval letter as well as call the seller’s agent to let him or her know you are a strong buyer.
Be ready to act now. In this market, sleeping on it may mean you lose the deal. Know what you want and be ready to make a decision.
Make a strong offer. Know your financial limits and use that knowledge to make as strong an offer as possible with earnest money of up to 5 percent of the purchase price. Also a down payment of 20 percent or more improves your chances, as well as eliminating the need to buy mortgage insurance.
Look for homes under your budget. If your pre-approval limit is $350,000, look for a home below that price so you can offer a little more if you wind up in a competitive situation with multiple offers.
Look for homes further out. If you can afford the time and money of a longer commute, you may find lower prices for your home outside the main urban areas.
Be flexible on terms. Buyers find your offer more attractive if you have fewer demands for things such as the closing date and the date you take possession of the home.
August home sales
Snohomish County
Listings: 3,394, down 19.4 percent since August ‘04
Sales: 1,806, up 21.4 percent
Average market time: 41 days, down eight
Combined median price: (For condos, single-family homes) $296,725, up 23.4 percent
Island County
Listings: 548, down 29.4 percent since August ‘04
Sales: 229, up 25.8 percent
Average market time: 63 days, down 22
Combined median price: $273,000, up 18.8 percent
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