In July 2017, the Tacoma housing market was ranked the 5th most competitive in the US. Yes, you read that right.
At the time the article was printed, housing market website Redfin had indicated that more than 50 percent of the previous month’s home sales were transacted above listing price.
A lot of that, according to local experts, was tied to attractive home prices. People- and we’re talking a lot of people had begun to realize that given the choice between buying in Tacoma and buying in Seattle, that in Tacoma, they’d get a lot more proverbial bang for their buck.
Mind boggling numbers
In the summer of 2017, the median sales price for a home in Seattle was about $735,000 (no, that’s not a typo, that’s an actual statistic.) In contrast, the median listing home price in Tacoma was less than half of that… $320,000.
It didn’t take long for would-be home buyers to do the math.
In fact, local realtors say the number of people who have been moving to the area, from other, overheated markets (such as Houston, or practically any metropolitan area in California), has been mind shattering.
What this means for first-time buyers
If you don’t own a home yet, but you’re heading down that path, you’ll want to do your homework- especially if you’re wanting to buy in Tacoma.
In addition to being able to put up the 20% down payment, some realtors have suggested that buyers be willing to pay “a little bit more” on closing costs.
Get your pre-approval
Being pre-qualified for a mortgage is a great first step, but you’ll want to keep in mind that most sellers won’t entertain an offer from a buyer who isn’t pre-approved.
When it comes to buying a home in Tacoma, you should assume that every other house hunter has a pre-approval in their back pocket. If you haven’t gotten your pre-approval just yet- you’ll want to get started on that right away.
Consider an escalation clause
In the Tacoma housing market, it’s not unusual for sellers to receive multiple offers, and adding an escalation clause can help make your purchase offer stand out.
Ultimately, the clause indicates that Joe Home Buyer is willing to pay $X over the next highest bid, all the way up to a pre-determined ceiling. If the home you want to buy is listed at $300,000, but you’re willing to pay up to $350,000, that final number would be the ceiling in your escalation clause.
Call Home Loans Today to get started
At Home Loans Today we know a thing or two about house hunting in a competitive market, which is why we’ll work had to ensure your mortgage application process will go as quickly and seamlessly as possible.
We can help you with both mortgage pre-qualification letters and mortgage pre-approval and we’ll do our very best to make sure your loan gets funded fast.
For more information on buying a home in Tacoma and/or how the home loan process works for Tacoma-based houses, call our office today at 866-919-2064 to learn more.