The Time is Right
When the Northwest Multiple Listing Service distributed its latest market update (March YoY), the document was titled “Puget Sound Area Home Sales Slow (But Not Prices)”. Interestingly, this title was edited from the initial press release, where the title included the addition of “as supply can’t match demand”.
When supply can’t match demand, it means there are just not enough houses to support demand. With more buyers than there are properties for sale, it pays to be the most prepared and attractive buyer possible. This is echoed by some veterans in the Northwest real estate sales.
According to Frank Wilson, the branch managing broker at John L. Scott’s Poulsbo office, he believes the diverse pool of buyers is larger than it has ever been, fueling the frenzy among would-be owners.
Bobbie Petrone Chipman, principal managing broker at John L. Scott in Puyallup and a member of the Northwest MLS board of directors, added that “buyers are finding themselves in the company of another buyer “waiting in the wings” as back-up buyers, thereby creating an environment where the “first place” buyer is reticent to ask for repairs in response to inspection discoveries.
As a buyer, how can you get an edge in this type of market? Two words – hard money. A loan strategy that focuses on easy qualification, quick processing and shorter terms is ideal in this environment. Listed below are three key areas where hard money provides an advantage and helps you compete as a buyer:
1. Works like cash—can close quicker, henceforth making your offer stronger. In a competitive environment, sometimes the ability to close quickly will trump a larger offer.
2. Leverage—by using hard money (vs cash), you are able to make multiple offers thus increasing your chances of getting deal underway. Not to mention, that it could free-up cash, so you can go after and win multiple deals.
3. Liquidity—Remaining liquid so that you can go after that next opportunity versus waiting for capital to free up (supported perfectly by Veristone’s vMax and v100).
It’s worth emphasizing, that once you have become a successful buyer in this environment, your ability to sell is important. The more quickly you are able to fix and flip your purchase, the sooner you receive your return. According to the data provided by NWMSL, now is the right time.
The year-to-date drop in pending sales versus first quarter 2015 is a reflection of tight inventory, according to MLS members. “It’s not for any other reason except there aren’t enough homes coming on the market to satisfy pent-up buyer demand,” stated J. Lennox Scott, the chairman and CEO of Jon L. Scott, Inc.
Reported data shows:
• 1.79 months’ inventory in the 23 county MLS area (this includes all the outlying counties in Washington) for March, down from 2.51 from a year ago
• 1.05 months’ inventory in King County
• 1.10 months’ inventory in Snohomish County
• 1.44 months’ inventory in Pierce County
All these numbers are down from a year ago.
Total Sales in the 4 county area (House and Condo in King-Pierce-Snoho-Kitsap) are down from a year ago 8600 units down to 8100 units – why? Because there are only 12,653 active listings in the 23 county area, down from over 17,000 a year ago!
This data supports that a good fix and flip in today’s Northwest real estate market will likely sell fast. And we saw how accessing had money lending can provide an advantage as a buyer. The time is right to call Veristone capital and let them assist you in getting your fix and flip deal underway.
Start Your Loan Request Today
Find out how much you can borrow, your interest rate, and your monthly payment.
Veristone does not finance owner-occupied properties.