The Sequim real estate market has finally topped out, and it is in decline. Actually, the nationwide market topped out and is now in decline, and all of this happened about 3 months ago. If you are watching real estate professionals around the country who share data from their markets on Youtube, you already know how dramatically the turn has happened, and how clearly we are now in decline. Most data represented on charts is only showing the beginning of this move, but in a few months, you’ll see how these charts show red dripping off the charts. Here’s one quick example:
The bright red line shows us how listing price reductions have dramatically increased of late. If you are planning to retire and buy a home in Sequim, may I suggest you be very careful right now? You need honest and competent advice as you step into that process, and what you don’t need is a Realtor with little experience or little professional competence to protect you. Yes, hire me as you buyer’s agent, but I do know how to help you in this market. That may mean not buying now. Ask some of my other clients, and they’ll tell you I don’t sell them if it’s not the right time or the right property.
I’m watching listings in the Sequim area suddenly not selling and listing prices getting reduced. I wrote an offer for buyers recently on a home that was listed for over $800,000. Because my buyer and I understood the market had topped out and we were starting downward, my client instructed me to draft an offer for $60,000 less than the listing price. Guess what happened?
The seller accepted the price and the closing date, but the listing agent killed the transaction. I know. Stupid, right? My buyer needed at least 14 days for the home inspection deadline, because they had to drive up from Redding and they needed time to attend the home inspection and review the report with me. The listing agent reduced the 14 days to 10 days, not leaving my buyer sufficient time to complete the home inspection. I had very specifically told the listing agent in writing that my client needed that 14 days, but the listing agent changed it anyway, and my client walked away because they didn’t have time to do the inspection.
How stupid was that? Does anyone think it was the seller who insisted on that reduction? Sellers don’t know what is standard and what is reasonable on contract terms in a market like this with a buyer like mine. They just ask their listing agent, and they trust their listing agent to know what is reasonable and best. I just wonder if this seller even knows how he lost this sale. I doubt it. Does anyone think the listing agent showed him my note warning them not to reduce the 14 days? Highly unlikely. Sellers aren’t stupid, but agents don’t always tell their clients everything they need to know. In this case, one might wonder why a listing agent would kill their own commission, too, but remember the saying, “Follow the money?” Suppose a listing agent waited patiently for a buyer to come directly to the listing agent. What would happen to their real estate commission? If they double-ended it like that, their commission would double. Wow! [I wrote a book for sellers to protect them and give them honest advice from an insider of 40 years entitled, “Seven Myths of Selling Your Home.”]
Guess what’s in store for this seller now? Since my client’s offer appeared to be the only offer, because the listing is still on the market as active, the seller is now very likely to ride the market down. They already reduced the price by about $40,000 since my client’s offer. But this seller could be stuck chasing the market down as he reduces the price again and again. Too bad. He had an offer he liked, but apparently his own agent convinced him to kill it. Not good in a declining market. Not wise at all.
What did I advise my client? Wait and be patient. Prices are coming down now. This is good news for my buyers, because I’m an exclusive buyer’s agent, but it’s not good news for sellers who missed the top of the market.
By the way, I would be remiss if I did not remind you that last December I wrote a book entitled, “The Coming Real Estate Crash in 2022.” Now we are seeing it unfold. How did I know?
The Sequim real estate market is now officially in decline.
Last Updated on July 13, 2022 by Chuck Marunde
