April 1st 2016. Beware. Nothing is as it seems. You’re house hunting and you have $700k to spend. You begin your search online looking at all of those amazing $700k dream homes throughout king county. Not so fast my friend. Your pre-offer online budget could actually be somewhere around 600k.
Let’s take a peak at what’s going on this tricky April Fools Day. The graphic below is pretty telling. In top neighborhoods, where average list prices are already hovering around $650k, you can also expect to pay about 5.25% over list price for your dream home.
In the top ten neighborhoods percentage of sale price to list price are all over 102%.
In Burien this little cutie jumped from a list prices of 184,900 and to 231,500! An increase of $36,500 or a leap of just under 20% of the total list price. That pretty astounding.
Imagine looking for a house in the $399,000 range and all of a sudden you’re pleading with your loan officer for $500,00 to get the job done. Well the Seward Park area is most definitely playing with people’s emotions this April Fools Day. This home on Juneau started at a respectable $399,950 and drew the attention of someone with 500K big ones. Another jump of 25%.
A cute tudor on Storybook in Montlake seems like a likely candidate for a bidding war and boy was it. Starting at just $839,000 this lovely home drew and increase of 210k! 25% increase on an already hefty price tag proving that a list price today could just be a huge April Fools joke.
WINNING the big listing price April Fools week joke however is a gorgeous home with an awesome view in the Hawthorne Hills neighborhood of North Seattle. Many people thought, “my word, I can afford this incredible house with my (very respectable) 800k budget!” But, the joke was on them. With a sale price of 28.5% over the very well thought-out list price of $799k, this 4 bedroom rambler with a view of Lake Washington hopped to a price tag of $1,031,000 before the deal was done.
How do you combat this continuing April Fools pricing facade? There’s only one way. Get a fantastic Realtor that knows your neighborhood well enough to tell you exactly what your “real online shopping budget” is. Your professional will know the list vs. sale percentage in their area and they will know how well the home was priced to begin with.