In the Seattle Times article about the latest housing inventory and prices news, we noticed an anecdote from Trevor Smith of Locality Real Estate citing a specific example of how out of wack the market is.
In Magnolia, a buyer recently passed on a house that was listed for about $560,000 because there were nine offers already on a house in poor condition, said Trevor Smith, managing broker of Locality Real Estate. The house eventually sold for about $630,000.
Smith’s buyer instead made the sole offer on a similar house nearby in much better condition listed for $650,000 that had been on the market for a while; the buyer closed last week on the house for $630,000.
"The big lesson there is under-priced homes are a worse deal than over-priced homes right now because the auction atmosphere drives prices up more than they should be driven up," Smith said. "Find homes that have been on the market awhile and you’ll get a better deal."
We're a curious lot so we decided to try and figure out the house he was referring to. We're pretty sure its this 1943 3-BR. Originally listed for $565,000 (or "about $560,000") on January 19, it went pending on January 29 and eventually sold for $625,000 (or "about $630,000.").
Looking at the photos we're not sure we'd say "poor" condition. Its obviously older and in need of some upkeep around the property but the interiors all look really sleek and well taken care of. There's some linoleum we'd like to get our hands on and replace, and we could have a field day remodeling that kitchen, but all in all we can see why nine offers came in. Even at that price its a solid amount of property in a desirable neighborhood close to an elementary school.
Is $630K "too much" for the home? Maybe. Probably. But good luck finding a decent Seattle home that isn't overpriced right now.
· Scarce listings drive King County home prices to new highs [ST]
· 3012 36th Ave W [Estately]
· Seattle-Area Housing Inventory Keeps Dropping To Historic Levels [CS]