Buyers • March 6, 2023

How to Avoid “Buyer’s Remorse”

by Joe Cross

What is Buyer’s Remorse and how does a good agent help to avoid it?

As the housing market has started to settle, after a wild 2 years, we are now seeing an understanding of what happened, and some reality checks.

There has been recent discussion about “Buyer’s Remorse” and this was even covered on King5 News. A recent survey found nearly 75% of buyers during the pandemic now have some “remorse” over their home purchase. This data is somewhat concerning and could be especially worrying for those considering buying a home in the near future. If this is you, please do not be too alarmed! The past 2 years were unprecedented, and it is important to remember that this was far from a normal market. It is also critical to understand that a good agent can help you avoid this, no matter the market!!

So what happened?

Buyers had it tough during the past 2 years. With extremely low interest rates, and extremely low inventory, the market was the most competitive it had ever been, driving prices to increase dramatically. We saw some buyers desperately bidding way way over ask price to secure a home. We saw buyers waive all contingencies to appeal to sellers. We even saw buyers broaden their search to much further away to increase their options. We even saw buyers ‘settling’ for houses that did not fully meet their needs or wants, due to the challenging and competitive nature of the market.

ALL of the above are things that a good agent would typically advise against!! As a result, there has been some fall-out for some buyers. The cooling of the market saw housing prices drop, leaving some buyers in a negative position on their home. Some buyers have found problems with their new home which would have been easily discovered with an inspection, had they not waived the contingency. And some buyers are now also facing difficult and long commutes, with employers now requiring staff to return to offices now the pandemic has ebbed.

So how would a good agent protect against this?

What we saw was unprecedented, and no one was able to forecast the market and the challenges faced. Agents and buyers had to face and overcome the challenges of the time, reacting to the constant changes.

However, even through the height of the market, I was able to successfully guide my clients into purchasing the right properties at the right deal, protect their interests, and avoid any future regrets.

I was able to achieve this, by following these key principles at all times:

Understanding my client:
Knowing their needs, desires, restrictions, what & who is important to them, what they like to do, and their favorite places to go. Knowing their commitments and passions. Knowing their goals and their future dreams. Understanding the way they view things, understanding what would make them happy, and importantly, understanding what wouldn’t. This level of connection, knowledge and understanding of the client, enables me to have their best interests and needs, at the center of the property search at all times. It also enables me to know whether a property is the right fit for them.

Having Detailed Knowledge of the Market:
Having sound knowledge of the market conditions, comparable properties, trends, and any upcoming changes that could have an effect. Knowing both the market worth of the property, and the worth of the property to my client. This is essential to identify whether a property is viable for my client and what needs to be done to make a successful deal.

Being a Confident and Strong Negotiator:
Even in a strong sellers’ market, with buyers having less leverage, it is never a case of simply giving the seller whatever they want … It is ALWAYS important that the deal is right for my buyer! Identifying where we could negotiate to benefit my buyer is essential. Even in the height of the market, I was still able to close on a home off-market, draw sellers into accepting offers before review and avoid bidding wars, and have sellers accept lower offers. Being prepared, being armed with detailed knowledge, and focused on my clients’ interests are just a few of the essential elements needed to successfully negotiate on their behalf.

Maintaining Focus:
No matter what path the property search takes, no matter how long or short the process is, a vital role of the agent is to ensure that the clients stay focused, even if it means the search takes longer. It is often all to easy to have wandering eyes, looking at properties outside of their needs and wants, looking at areas that do not meet their commitments and goals. This discipline ensures that the clients are looking at the right properties and are not being lured down a path to regret.

Advising Expertly and Honestly:
Ultimately, the client is the one who makes any decision. This is why it is imperative that the agent has guided them and advised them correctly. This also means that there must be complete honesty as well expert knowledge. This means knowing the right limits, the right direction to steer your client, and being prepared to draw the line. A good agent knows how to buy a home, a great agent knows when to walk away.

If you are planning to enter the housing market, make sure you are working with a GREAT agent … one that will always protect your interests.

Sellers • March 2, 2023

7 Reasons to Hire a Real Estate Professional

by Joe Cross

If you are considering selling your property, it is natural to ask yourself “do I really need a Real Estate Agent?”. It is human nature to question the value of a service or a product being offered, and that applies to Real Estate Agents too. Ultimately, when it comes to selling your home, you want to achieve the highest possible sales price via the smoothest possible process. So considering this is the goal, here are 7 Reasons why you should look to hire a Real Estate Professional…

Education & Experience:
You don’t need to know everything about buying and selling real estate if you hire a real estate professional who does. We’re all looking for more precious time in our lives, and hiring pros gives us that time.
Agents are Buffers:
Agents take the spam out of your property showings and visits. If you’re a seller, your agent will filter all those phone calls that lead to nowhere from lookie loos and try to induce serious buyers to write an offer immediately.
Market Condition Information:
A broker can disclose market conditions, which will govern your selling process. Many factors determine how you will proceed. Data such as the average per square foot cost of similar homes, median and average sales prices, average days on market and ratios of list-to-sold prices, among other criteria, will have a huge bearing on what you ultimately decide to do.
Neighborhood Knowledge:
Agents either possess intimate knowledge or they know where to find the industry buzz about your neighborhood. They can identify comparable sales and hand these facts to you, in addition to pointing you in the direction where you can find more data on schools, crime or demographics. For example, you may know that a home down the street was on the market for $750,000, but an agent will know it had upgrades and sold at $685,000 after 65 days on the market and after twice falling out of escrow.
Negotiation Skills & Confidentiality:
Top producing agents negotiate well because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction and because they are skilled. It’s part of their job description. Good agents are not messengers, delivering buyer’s offers to sellers and vice versa. They are professionals who are trained to present their client’s case in the best light and agree to hold client information confidential from competing interests.
Handling Volumes of Paperwork:
One-page deposit receipts were prevalent in the early 1970s. Today’s purchase agreements run twenty pages or more. That does not include the federal- and state-mandated disclosures nor disclosures dictated by local custom. Most real estate files average thicknesses from one to three inches of paper. One tiny mistake or omission could land you in court or cost you thousands. In some states, lawyers handle the disclosures, thank goodness!
Price Guidance:
Contrary to what some people believe, agents do not select prices for sellers or buyers. However, an agent will help to guide clients to make the right choices for themselves. If a listing is at 6%, for example, an agent has a 6% vested interest in the sale, but the client has a 94% interest. Selling agents will ask buyers to weigh all the data supplied to them and to choose a price. Then based on market supply, demand and the conditions, the agent will devise a negotiation strategy.

About Me • February 15, 2023

2022 A Rewarding Year

by Joe Cross

At the end of 2021 I decided to take a huge leap of faith; I gave up my job to pursue a new adventure and jumped head-first into a new career in Real Estate. This was not an easy decision to make, and one that carried big risks and uncertainty. However, through hard work, determination, passion & dedication, as well as the tremendous unwavering support from my incredible wife, it absolutely proved to be the right decision.

2022 was a year that surpassed all of my expectations, and one that I am proud to say, was hugely successful. It was a year that I overcame many challenges, a year that I learned more about myself, and a year that I grew as a person. It was a year that brought passion back into my professional life, a year that brought a deeper connection to existing relationships, and a year that brought many new friendships.

Despite the unprecedented market we saw last year, a market which swung wildly and posed many challenges for buyers in particular, I was still able to help many wonderful clients achieve their dream of homeownership. This was done by focusing on my clients’ needs and desires, understanding the market conditions, and going the extra mile.

Helping my clients achieve their dreams was by far the most rewarding part of 2022. The friendships that I made from this was by far the biggest bonus.

I am also very humbled to have been recognized by my brokerage with 2022 Awards:

2022 Relentless Award Winner
2022 Quality Service Award Winner
2022 Regional Sales Level 2 Award Winner
2022 Five Star Professional “Rising Star” Award Winner

I would like to say a big, big thank you to everyone who both supported and worked with me throughout the year.

Special thanks also to all of my wonderful clients, the amazing team & agents at Century21 Real Estate Center, and of course, my incredible wife, who gives me more than she could ever know.

Buyers • November 17, 2022

“Short-Term Pain for Long-Term Gain” … why buying now is an opportunity

by Joe Cross

Yes interest rates have increased, and you, like many many potential buyers out there, may be thinking it is better to wait a year to buy. The hope is that the interest rates will drop, and you will be in a better position to buy.

But are you missing out on an opportunity?

Here is a projected outlook which shows that some short-term pain with the current interest rates, could lead to significant long-term gains.

Let’s take a look at buying a home listed at $500,000 in today’s market, against what buying the same home in 1 years’ time may look like:

	Buy Now		Buy Next Year

List Price	$500,000		$525,000	(5% annual appreciation)
Offer	$485,000	(97% based on market demand)	$525,000	(100% based on market demand)

Down Payment	$48,500		$52,500
Loan	$436,500		$472,500
Interest	6.75%		5.75%

Monthly Payment (Principal & Interest)	$3,667.81	(taxes & insurance not factored)	$3,576.56	(taxes & insurance not factored)

Here you can see that with a conservative forecast of 5% annual appreciation on the property, the purchase price has increased.

I have also factored that there will be a 1% interest drop over the next 12 months. Although this does benefit the monthly payments, it does however, also affect the purchase price. Where now we are seeing seller concessions, as well as below ask offers being accepted, a decrease in interest rates could significantly impact that. We all saw how the market reacted to low interest rates, and so with a drop in rates, it is inevitable that demand will increase. The many other potential buyers out there, waiting, will be back in the market with you!! For this projection, I again conservatively estimated that we would return to a “full-ask” market, but it is not beyond the realm of reality that this could in fact trigger a hot seller’s market again.

On face value, it does show that despite the potential increase in market demand and thus a higher purchase price, it is still beneficial to wait a year as it produces a lower monthly payment.

Or is it??

Let’s look at the bigger picture… if you did buy now instead of waiting 1 year, would you be better off?

	Buy Now		Buy Next Year
Equity	$48,500	Down Payment	$52,500	Down Payment
	$40,000	Market Appreciation
	$5,000	Principal Payments

Equity Total	$93,500		$52,500

Taking into account the market appreciation (where the home you bought for $485,000 is now worth $525,000!) the down payment, and the principal payments made over the course of the year, you are now standing at a potential $93,500 in equity in the home. That is nearly double the equity you will have if you wait until next year!!

It must be noted that the above does not include all costs, such as closing costs on the purchase, and other costs on the mortgage payment. It does however show the potential gross gains you can make in the market over the next 12 months. (Closing costs would need to be considered to determine your net gains)

Refinance??

But there’s even more opportunity… now can you refinance?

New Valuation	$525,000
Amount Borrowed	$436,500
Principal Paid	$5,000
Amount Owed	$431,500
New Loan To Value Ratio	82.2%

Waiting 12 months would give a lower monthly payment by roughly $90 per month, which is significant. However, after 12 months of ownership, you would have gained 8% additional equity in your home. This means you would now be able to consider the option of refinancing to take advantage of the lower interest rates.

With the increase in value of your home and the payments made towards the loan, the extra equity in the home puts you in a netter standing. Perhaps, using the $4,000 you saved from a lower down payment, you can now refinance to get a much lower interest rate and have a much lower monthly payment. (You may also be in the position to remove the Mortgage Insurance payment too!!)

Again, it must be stressed that I, nor anyone, has a magic ball to see the future, and so these figures are projections only. However, should these projections (based on market analysis, trends, forecasts, and historical activity) hold true, then buying now really should not be considered as daunting …. It should be looked at as an OPPORTUNITY!

Buyers • September 28, 2022

The market has changed …

by Joe Cross

The market has changed … but what does this mean for buyers?

The past 18 months in Real Estate really have been quite a wild ride, a ride that has clearly favored Seller’s. We all know that the unprecedentedly low interest rates, coupled with historically low levels of inventory, created a frenzied and highly competitive market for buyers. House prices skyrocketed as homes sold way above list prices, typically with multiple bids and within just a few days of coming on to the market. It was tough being a buyer.

The interest rates were never set to stay as low as they were, and alas we did see a rapid increase, as the unpredictable market continued to shatter all the norms.

With elevated house prices, and now higher interest rates, there is a feeling that the current market has now, somehow, become even harder for buyers. On the surface this is an understandable perception … however, when we take a deeper dive, the complete opposite could in fact be the truth!!

Here is an example of how, in this new market, you may have a far greater chance of being successful in purchasing a home, how the impact of the interest rate increase could be minimal, and why there are still good reasons to buy…

Buying a $500,000 Property In Snohomish County

April 2022

House listed in the peak of the market at $500,000
Average house sold for 114% of list price
Offer accepted at $570,000 (114% of list price)
Interest rates at 3.5%
Monthly payment (P&I) based on 10% down payment = $3,183.30

September 2022

House listed in a slightly cooler market at $500,000
Average house being sold for 98.7% of list price (downward trend)
Offer accepted at $485,000 (97% of list price)
Interest Rates at 6%
Monthly payment (P&I) based on 10% down payment = $3,365.57
$8,500 ‘reduction’ on outlay for down payment

In the above example, buying the home now, with higher interest rates, works out to be only $182.27 per month more. When we factor that the down payment outlay is $8,500 less, that effectively reduces the monthly difference to just $158.66 per month.

Less Competition = More Chance of Success
With the increase in property values, and the increase in interest rates, we have seen a number of potential buyers leave the market. They may have been priced out of homes. They may have left the market out of fatigue from failing on multiple bids. They may have had to renew their lease having failed to buy in time. Whatever the reason, there is a significantly reduced buyer pool to compete with … fantastic news should you find the property of your dreams!!

Added to this, there has been a considerable increase in homes on the market, giving buyers more choice than before. More choice means less likelihood of being in a bidding war on a property… again great news!

In fact, it’s not just about the competition on bidding on the property, but also the ability to take time on your decision. Buying a home is one of the biggest moments in life, and so with a less competitive market, this decision can now be assessed and deliberated more, as homes are now taking longer to sell.

Negotiations Are Back:
As the buying pool has reduced, and homes are now sitting on the market for longer, the needle has shifted. Whether negotiating on purchase price, closing costs, or even both, buyer concessions are back.

In April 2022 we saw the demand peak, with Homes in Snohomish County achieving on average 114% of list price. The following months saw a gradual slow down, and in August 2022 we saw this drop to 98.7%.

So despite the interest rates no longer being as low as they were, the ability for the agent to negotiate on behalf of the buyer has increased, thus limiting the financial impact.

Rental Rates Have Jumped
The typical alternative to buying a property is to rent. Renting absolutely has its benefits and can indeed be a better option for many people. However, as we have seen property prices increases, the rental rate increase has been even more dramatic; Rental Rates have increased by nearly 20% this year!!

This means that if you were paying $2,000 per month for a 2-bedroom apartment, you may now end up paying $2,360 for the same apartment. That is an additional $4,320 investment over the course of 12 months that will not see any returns.

We Can Only Operate in the Now
The reality is, no one has a magic crystal ball to see the future. The low interest rates that we saw were historic, they have never been that low before! The interest rates we are seeing now are similar to the pre-pandemic market. Likewise, the dramatic house price increases we saw was something completely new. House prices typically steadily increase year-on-year, but who knows if the market will react that way again in the future.

It is a case of living in the now, and reacting to market changes if they benefit you

So what if you buy a house now and the interest rates change? Well, if they drop, then you can always refinance to the lower rate and watch your equity build. If they increase, then great, you’re locked in at the lower rate. The saying “marry the house, date the interest rate” really does ring true.

So despite the “doom & gloom” reporting, all is not lost!! Yes, the market still has its challenges for buyers, but there are some genuine positives out there too. With the right plan, the right data, and the right guidance, this really could be the right time to strike.

About Me • June 24, 2022

Who I Am

by Joe Cross

It has been a long journey for me to be selling Real Estate, one that has taken me all the way across the pond from England, to now here in the greater Seattle area of Washington State, which is today home.

I came to the USA to pursue a career opportunity, and to push myself personally. Having landed in California with just a suitcase of clothes and no contacts, I threw myself in the deep end. After 4 years I had exceeded all expectations and targets, established many business and personal relationships, and I had even met and married my wife.

When the global pandemic came and changed the world, my wife and I took the time to evaluate what was truly important and what we wanted as a family. This is what brought us up to Washington State and a new career path a Real estate Agent.

Being a Real Estate Broker is what I not only have the deep-down burning passion for, but what I also truly believe I have been perfectly crafted and molded to be successful at:

My Father served in the army and from him I learned the values of hard work, discipline, and duty.
My Mother, raising 3 children and caring for a handicapped husband, instilled in me the enormous will to help others, the desire to put other’s interests ahead of my own, and the courage to make sacrifices to bring greater rewards.
Being the youngest of 3 boys (as well as being by far the smallest!) brought about my sheer determination and competitiveness, as well as the focus to learn and think creatively to give me the winning edge.

These traits are what I bring to my role as a Real Estate Agent and how I will deliver the best service I possibly can, for you to reach your real estate needs and goals.

How to Avoid “Buyer’s Remorse”

7 Reasons to Hire a Real Estate Professional

2022 A Rewarding Year

“Short-Term Pain for Long-Term Gain” … why buying now is an opportunity

The market has changed …

Who I Am

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