Don't Confuse Fantasy with Reality: Buying Your Stepping Stone Home in Seattle
Don't Confuse Fantasy with Reality: Buying Your Stepping Stone Home in Seattle
Seattle's housing market can make it tough to find your dream home. Don't confuse fantasy with reality. Waterfront estates exist, but they come with a hefty price tag. There are many reasonably priced homes in Seattle's great neighborhoods, you just need to know where to look.
5 Steps to Winning in Seattle's Stepping Stone Market
People move for all sorts of reasons; job changes, family growth, etc. The key is to find a home that fits your current needs and budget, knowing it probably won’t be your forever home.
Seattle's housing market continues to heat up… to many it feels like Seattle homes are getting less and less attainable. For some, it feels like if they can’t get into their ideal neighborhood - they shouldn’t buy a home at all. That’s a tough spot to be in. If home prices exceed your budget now, those homes adjacent to your favorite neighborhoods are not too far behind. Waiting could have you priced out completely and resigned to move to the suburbs…
If you’re already looking in the suburbs of Seattle, and feeling the pinch, the next step is going rural… That’s the way it goes.
1. Track Prices, Not Listings:
Track a specific home type in your desired neighborhood to see what they're actually selling for, not just the listing price. You'll see trends emerge: homes with all bedrooms above ground tend to sell for more than ones with bedrooms in the basement. Updated move-in-ready homes fetch a premium, and properties with privacy and yards are in high demand - even if they are outdated.
2. Value Over Price:
Focus on value, not just price. A fixer-upper might seem tempting, but consider the time and money it will take to renovate. Seattle has a range of options: nice, move-in ready homes, older homes needing work, and townhomes. The "iron triangle" concept applies here: you can pick two - price, location, or condition. The best-priced, updated home in your dream neighborhood is probably a unicorn.
3. Get Creative (But Be Realistic):
Seattle real estate offers variety. Consider nearby neighborhoods that offer similar benefits but might be slightly more affordable. A few years back, you couldn’t pay people to buy homes in Fremont near the bridge between Fremont and Wallingford. Then, the ‘Free-lard’ area felt like a no-mans-land too. Now they are highly desirable.
Townhomes can be a budget-friendly option compared to detached homes. Look for opportunities with motivated sellers, like tenant-occupied homes. That’s where I’ve found time and again the best value in a property - the difficult tenant-occupied ones that are hard to show. Remember, you're looking for good value, not just a cheap price.
The other great option is to focus on homes with Bad Picutes. You'd be surprise at how many agents use their cell phone to take picutres of a home. Pro's higher professional photographers - but some agent's think they can save a buck and do it themselves. Those terrible photos can create a huge opportunity.
4. Don't Listen to Your Friends' Stories (Maybe Listen to Mine... Briefly):
People buy on emotion and justify it later. My own home purchase wasn't perfect, but it fit our needs at the time. We compromised on location and updates to get into the market. I could list a ton of things that show this didn’t line up with our goals when we set out to purchase. But then again, I can tell you a story of how great a place it is too. It’s not perfect. It’s not a dream home, it is a good home, and will be for years to come. The point is, don't get stuck on analysis paralysis. Perfect is a cute way to say you procrastinate.
5. Think Long Term:
Buying your first home is a stepping stone, not a life sentence. Think long-term and focus on building equity over time. You might even consider renting out rooms to help cover costs. A cheap house might seem like a good deal upfront, but it could cost you more in the long run. Focus on a solid property that meets your needs and budget.
3 Reasons Why Location Flexibility Wins
Location is important, but it shouldn't be the only factor. I've had buyers who were so focused on commute and location that they bought the wrong house. Finding a home in the right location is a challenge. Here's why being flexible with location can be a winning strategy:
Finding the perfect home in the perfect location is a bitch. Let me give you 3 reasons why you should give up expand your search on your dream location, and find the right home somewhere else.
The best locations come with the highest price tags. It's rare to find a budget-friendly home that meets all your criteria in your dream neighborhood, even with a million dollars. Every time a home sells, it sets the new Bottom of the market. If you truly need space to live your life, you might have to change location. 10-20 min can mean more space, better features, or a lower overall cost.
Being flexible with location can be a winning strategy:
Lets break that down:
More Space for Your Dollar: The best locations often have the highest prices. It's rare to find a home that meets all your needs in your dream neighborhood on a budget. If you have to be in a certain neighborhood and are getting priced out, the only real way to combat that is to buy a crappier house, or a smaller one. Every home that sells sets a new market bottom. You’ve got to get the right size from the start. If you truly need space to live your life, you have be open to changing locations. 10-20 minutes further out can mean a larger, more livable home with the features you desire, or a lower overall cost.
Better Features Don't Have to Be Far Away: Think about neighborhoods that offer similar amenities - coffee shops, restaurants bars breweries. Start tracking how much time you actually spend going out to these places. Is it every day? Every night? Or once or twice a week? Less? A 10-15 minute commute to your favorite brewery? Sounds like a massive win.
A Lower Overall Cost: Now look, you might spend the same money, but the value you get for a more done, move-in ready home with the space you need at a price that makes sense - all by choosing an area that’s 10-15 minutes further out… Sounds like a dream to me.
Stop putting so much pressure on yourself. Buy your first place, find a way to keep it, then go buy something else. Build your real estate portfolio over time. Everyone wants a good retirement, and this is a great way to get there.
My role isn’t to try to convince you to do anything you can’t justify or make sense of. It's to show you the data; It’s to guide you through the process; It's to help you avoid mistakes and pitfalls. Plus, offer you tangible, actionable, sound objective advice using relevant data so you can make a great decision for yourself, your family, your partner, or whomever you are buying a home with little to no speculation about the market.
If you're making a move, reach out, and lets chat. Happy to brainstorm and come up with a solution that gets you a tangible and actionable plan that fits your unique situation.
Best,
Justin H Gazabat
Broker | PNW, Seattle, Ballard, East Side
Your Friendly Seattle Neighborhood Real Estate Professional.
www.JustinGazabat.com
PS: If anyone in your social or work circles considering a move, just send Me an intro text or email with their best contact info, make sure everyone is CC’d and I’ll take care of the rest! I promise to take great care of them, serve them well, make you look good, plus help them get great results.
