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Hi, I’m Doron Weisbarth with Weisbarth & Associates. Welcome to my May 2024 Market Update! About three months ago, my team and I made the following prediction: “If you’ve been wanting to sell your home this year and have been waiting for a real boom in the market, it looks like you may have one this spring.” The trends we observed back then have now come to fruition. This, despite the mortgage interest rates jumping into the low- to mid-7% range on April 1st. The market is absolutely thriving! Let’s take a look at the data for single family homes in King County. In April we saw a sharp rise in the number of new listings that had come on the market, and a corresponding increase in the number of listed homes that received an offer and went pending, and the number of deals that closed. These are all markers of a strong real estate market. Not surprisingly, this strong market activity saw an equally strong increase in home prices, reaching very near the peak prices from the spring of 2022. Now, in recent blogs and vlogs, I told you about the pent-up demand and supply that built up during 2023. What’s interesting is that this pent-up demand and supply from 2023 happened while interest rates were basically the same as they are now, meaning in the low- to mid- 7% range. Back then, these same interest rates had a strong dampening effect on the market activity. Yet, here we are, with the same interest rate, but the market activity and home prices blowing past anything that we’d seen last year. Take a look at the median prices for single family homes for both King County and for Seattle. And just to be clear, these trends from last year and, again, this year, hold not just for King County, but for many other counties in our western Washington area and beyond. By the way, if you want to look at this data and read my report at your pace and leisure, you’ll find all this information in my May newsletter, available online and for download, for free, at Weisbarth.com/Newsletter, that’s Weisbarth.com/Newsletter. So clearly, this pent-up demand and supply has created quite a momentum in our marketplace. I think that many buyers have internalized the idea, correctly, I might add, that they can always refinance their mortgage once interest rates come down. And it’s worth noting that our favorite lender, Julie Johnson, from Cross Country Mortgage, offers a free refinance any time during the first 36 months after you buy your home, as long as you get your acquisition mortgage through her, of course. Now, if you look at historical data, the number of new listings tends to peak just around this time every year. Once the number of new listings starts to decline, we see a corresponding decline in market activity overall. So, it will be very interesting to see what happens in the next few months. Will the forces that create those historical trends prevail again? Or will the momentum of the pent-up demand and supply win the day? If it’s the latter, then we’ll see continued strong activity for a while, even into the summer months, a time that, again, historically, tends to see slower market activity. So if you, or someone you know, are considering buying or selling a home in the next few months, the market still has plenty to offer, no matter what. “Where to start?” you might ask. Start by getting the proper education that is custom tailored to your needs. My team and I offer free, no-obligation consultations, that will educate you on what you need to know for your specific needs. Our hope is that you’ll hire us because we’ll prove to you that we are the best team to represent you in your transaction, because we have the best knowledge, experience, and knowhow. And, by the way, we have the numbers to prove it. You can easily refer your friends, family, or colleagues to us by email, or on my website at Weisbarth.com/refer. The best way, by far, is just to call me! I love talking with people about real estate and helping them figure out the best path to move forward. My direct phone number is 206-779-9808, that 206-779-9808. So, don’t be shy – just call me! And remember that your business and referrals will directly help the kids and Childhaven, which recently merged with xxx and is now called Akin. If you find this information helpful, be sure to like, subscribe, and share with anyone you know who's thinking about selling or buying a home now or in the future. I'm Doron Weisbarth with Weisbarth & Associates. Thank you for watching. Have a great rest of your spring, and I’ll see you next month!

When diving into the real estate market, especially in vibrant areas like Seattle, understanding key financial metrics is crucial. One such metric that stands out is the After-Repair Value (ARV). At Weisbarth & Associates, we believe that knowledge is power, and understanding ARV can significantly impact your real estate investment decisions. Serving areas like Ballard, Wallingford, Green Lake, and more, we aim to empower our clients with insights that drive smart investments. Understanding After-Repair Value (ARV) The After-Repair Value (ARV) is a critical figure in real estate, representing the estimated value of a property after all repairs and renovations have been completed. This metric is essential for investors, flippers, and even homebuyers looking to gauge the potential worth of a property post-renovation. ARV helps in determining whether a property is a viable investment by providing a clear picture of its potential market value. Why Is ARV Important? Investment Decisions: ARV is a cornerstone for investors. It helps in assessing the profitability of a property by comparing the purchase price and renovation costs against the estimated post-repair market value. For instance, in sought-after Seattle neighborhoods like Wallingford or Green Lake, knowing the ARV can guide you in making informed investment choices. Financing and Loans: Lenders often consider ARV when providing loans for real estate investments. A well-calculated ARV can lead to better loan terms, as it provides lenders with a sense of the property's potential value. Negotiation Power: Understanding the ARV gives buyers and investors an edge in negotiations. It provides a solid foundation for negotiating purchase prices and estimating renovation budgets. Calculating ARV Calculating ARV involves several steps, each requiring careful consideration and accurate data. Here’s a simplified breakdown: Assess Current Property Value: Start by determining the current market value of the property. This can be done through a comparative market analysis (CMA), which involves looking at similar properties (comparables) that have recently sold in the area. Estimate Renovation Costs: Next, estimate the cost of necessary repairs and renovations. This step requires a detailed inspection of the property and a clear understanding of the extent of work needed. Evaluate Comparable Properties: Analyze recently sold properties in the same area that have undergone similar renovations. These comparables provide a benchmark for estimating the post-renovation value of your property. Calculate ARV: The final ARV is calculated using the formula: ARV=Current Property Value+Renovation Costs Example of ARV Calculation Consider a hypothetical scenario in Seattle’s Ballard neighborhood: Current Property Value: $1,000,000 Estimated Renovation Costs: $250,000 Comparable Properties (After Renovation): Average sales price $1,500,000 Using the formula: ARV=$1,000,000+$250,000=$1,250,000 In this example, the ARV is $1,250,000, suggesting that post-renovation, the property could be valued around $1,250,000. If comparable properties in Ballard are selling for an average of $1,500,000, this indicates potential for a profitable investment. ARV in Seattle's Real Estate Market Seattle’s real estate market is diverse and dynamic, with each neighborhood offering unique opportunities and challenges. Areas like Ballard, Wallingford, and Green Lake are known for their vibrant communities and high demand for renovated properties. Understanding ARV in these areas can provide investors with a strategic advantage. Ballard: Known for its trendy vibe and historic charm, Ballard properties often see significant value appreciation post-renovation. Wallingford: With its mix of old-world charm and modern amenities, Wallingford is a hot spot for real estate investments, where ARV calculations can help identify lucrative opportunities. Green Lake: Popular for its scenic beauty and recreational opportunities, Green Lake attracts buyers looking for updated and modern homes, making ARV a valuable tool for investors. Partnering with Weisbarth & Associates At Weisbarth & Associates, we specialize in guiding our clients through the complexities of the Seattle real estate market. Our expertise in evaluating ARV ensures that our clients make informed and profitable investment decisions. Whether you’re looking to buy, sell, or invest in neighborhoods like Ballard, Wallingford, or Green Lake, our team is here to provide the insights and support you need. Understanding ARV is just one aspect of a successful real estate strategy. With Weisbarth & Associates by your side, you gain access to comprehensive market knowledge, expert advice, and a commitment to your real estate success. The After-Repair Value (ARV) is a vital metric for anyone involved in real estate investing. By providing a clear picture of a property’s potential value post-renovation, ARV helps investors make informed decisions, secure better financing, and negotiate effectively. In the bustling Seattle market, particularly in areas like Ballard, Wallingford, and Green Lake, understanding and leveraging ARV can lead to successful and profitable investments. Trust Weisbarth & Associates to guide you through this process with expertise and dedication.

Hi, I’m Doron Weisbarth with Weisbarth & Associates. Welcome to my April 2024 Market Update! For most homeowners, when they try to sell their home, the two main questions on their minds concern “price” – can I sell my home for the price that I want and that I think that it’s worth? And “time” – can I sell it fast enough so that I can move on with my life? As you can see, market all activity indicators all trending upward. For single family homes across King County, New Listings and Pending Listings – those homes that received an offer but hadn’t closed yet - and Closed Sales, have all taken a strong upswing in March. On the chart I highlighted the first quarter of each year since 2021, so that you can see that this increased activity follows a familiar, annual pattern for our area. So from that perspective, there’s no big surprise here. However, when I add the graph for Median Prices, you can see that prices have experienced a strong upswing in February, and are continuing that upward path, albeit, not quite as strongly in March. And, as I pointed out in last month’s blog and vlog, the Median Price starting in February is already higher than at any time last year. By the way, if you want to look at this data and read my report at your pace and leisure, you’ll find all this information in my April newsletter, available online and for download, for free, at Weisbarth.com/Newsletter, that’s Weisbarth.com/Newsletter. I want to clarify that the trends that I’m showing in these charts for single family homes in King County hold true for other counties in our area as well. Now, what halted a lot of the market activity last year were the higher mortgage interest rates, that at one point shot above the 8% mark. Those rates dropped below the 7% mark at the end of last year, which helped fuel some of this market surge that we’re seeing today. Interestingly, mortgage interest rates have climbed above the 7% mark again very recently. However, so far, I don’t see any changes in the buyers’ behavior. My sense is that many buyers have internalized the message that they can always refinance their mortgage when the rates drop down again, as they are expected to do starting later this year. And a quick plug here for my favorite mortgage officer, Julie Johnson from Cross Country Mortgage here in Seattle, who will refinance your acquisition loan for free, anytime within three years after you took an acquisition loan with her. Of course, there’s no guarantee that this buyers’ behavior pattern will continue. So, we’ll see what happens in the next few months. If market activity continues to trend upwards, sellers can expect to continue to enjoy price gains, with at least moderate appreciation in the value of their homes, and they can expect quick sales. Now, a word of caution here. Look even when the times are good, relying on the market to deliver to you the full value of your home, is a risky undertaking. Getting the most from your sale doesn’t happen just because your home gets listed on the NWMLS. I’ve seen many homes in the last couple of months that were improperly marketed and improperly priced, and, as a result those sellers walked away from tens of thousands of dollars, literally, and in a couple of cases over $100, 000 – I’m not making this up! As in almost any field, there is an art and science to doing things right. In the case of maximizing the value of a home, this requires a tested strategy, a properly laid out plan, a deep understanding of the buyers’ psychology and perspective, and intimate knowledge of the market forces and dynamics. So, if you or someone you know is considering a real estate move this year, my team and I are here to provide guidance and ensure informed decisions to maximize your results. We’ll show you our system for reaching that goal, and proof that it actually works! We’ll be happy to sit down with anyone, with absolutely no obligation, and show you our plan and the strategies that we use, and explain the logic behind them. You can easily refer your friends, family or colleagues to us by email, or on my website and Weisbarth.com/refer, or, the best way, just call me! My direct phone number is 206-779-9808, and I’m always happy to speak with old friends and make new ones, and help in any way I can. And let’s not forget that your business and referrals will directly help the kids and Childhaven. If you find this information helpful, be sure to like, subscribe, and share with anyone you know who's thinking about selling or buying a home. I'm Doron Weisbarth with Weisbarth & Associates. I hope you enjoy this amazing Spring, and see you next month!