It finally happened. Recently I supported a client’s decision to pre-inspect a home before offering on it. Up until now, I had always advised clients against it. My conversations were centered around the fact that some Seattle agents were pushing pre-inspection culture on the Tacoma buying scene, and I didn’t want to play a part in that. However, an all-cash client recently missed out on three different properties even after offering substantially over list, in major part because others had pre-inspected and waived it with their offers. We had a conversation and ultimately realized that this is the current reality of our market to win a home.

I have been helping buyers in Tacoma for four years, and so much has changed in the buying culture since I started. The conversations I had while prepping buyers in 2015 are vastly different in 2020’s market. I used to tell buyers if they didn’t have their closing costs covered, not to worry. Finding a home where a seller was motivated enough to pay part or all of their closing costs shouldn’t be an issue. You would have time to have a home inspection once we got under contract, and even negotiate credits and repairs.

Now, I am seeing pre-inspections left and right. More local agents are supporting these, and putting in the agent remarks that they are encouraged. It is starting to become routine rather than the exception.

Personally, I hate pre-inspections. Buying a home is tough enough, and expensive enough without having to shell out $400-$700 to inspect a home before offering on it. Not having your offer accepted once you’ve shelled out that amount of money stings, as well.

The silver linings for buyers on pre-inspects:

1. You have more confidence in offering what you need to win a home in this market. The condition of a home is always a bit of a mystery, unless a seller provides a recent home inspection ahead of time.
2. Buyers willing to pre-inspect look more committed to a home than buyers who have not.

The cons for a seller of having buyers pre-inspect:

1. You have many home inspectors going through the house, opening access points, potentially making messes.
2. Inspections make other buyers’ showings less comfortable. It isn’t as laid back when you’re showing a home while there is a group of other people interested at the home with their inspector. Private showings allow buyers to feel comfortable poking around and allows them to have a stress-free showing. Buyers may feel rushed or like they don’t have as much of a chance if someone else is inspecting the home, so they might try and go for a different property.

Personally, I feel if sellers want to encourage buyers to waive their inspections, they should pay to have the home inspected by one licensed and bonded home inspector and attach that report to the listing for prospective buyers to review. It’s tough, though, because not all inspectors are equal, and unless I know and trust the inspector who conducted the inspection, I might not feel confident about its content.

Not every home requires a pre-inspection, but in certain neighborhoods and price points, they are necessary to win a home, right now. I help my clients identify which homes will likely have other offers that waived their inspection and help them make the best decision for them. For more about negotiating, check out my blog post all about buyer negotiation periods here.

What type of negotiator are you? Are you the type of person that just wants to offer what you think is fair for everyone, and move through the transaction as smoothly and efficiently as possible? Do you like to push the boundaries of what might be viewed as fair and reasonable, or is that stressful for you? Below I am going to outline different tactics, and terms that I consider when I help my buyers place an offer on a home. 

These are some questions that I run through when I am helping my clients decide on the offer price-

“Should I offer list price, or over list? If over, how much?”

I tell my clients that this is a case by case scenario. Offering list price or below on a brand new listing in a competitive market is not typically a great idea– depending on what price they listed at compared to sold homes nearby. There are times after we do the research, that we conclude that they came on a little too strong (high). If this is the case, we can chat more about how to strategically offer less.

There may be times where we submit an original offer, and have a back up offer in mind just in case we get updated that another offer or multiple offers have come in. This is a good option if there is no offer review date (date set by the sellers to review any potential offers). 

“What if I end up overpaying?…”

Sometimes when there are multiple offers, you might worry that if you win, you may have offered more than the home is worth.

Here are some things to consider- 

When we determine the offer amount, I search for similar homes nearby, and see what they were listed for/sold for and pass this information onto you. This is what an appraiser will do when they go to the home to determine its value. We might offer more than what we think it will appraise for so that we can win it in a multiple offer situation…

Going from that, there are different types of value. How much buyers are willing to pay for the home, and how much a home is worth to an appraiser. Think of the values as emotional/buyer perception of value, which includes the cuteness factor, curb appeal, and overall vibe of the home.  Then there is the scientific/equational value; size, bed/bath count, how it compares to homes with similar stats nearby. Sometimes you need to get under contract with the emotional value, and re-negotiate if the appraised value comes in lower. 

How many days has the house been on the market? Is it a new listing? If it is a new listing, does it have an offer review date set by the seller(s)? 

If it has an offer review date, this means that the agent plans to go through and present offers on a particular day in the future of the house coming on the market. For example, a home gets listed on a Thursday, with the seller and their agent planning to review any offers that come in the following Monday. This sets expectations for interested buyers, and allows the house to get full exposure- siting on market over the weekend and getting as many agents and qualified buyers through as possible before accepting any offer(s). If there is an offer review date, I will reach out to the listing agent to confirm that they intend to stick to that date. I will also look at how is it priced compared to recently sold homes nearby, and competing similar homes that are on the market.

If there is no offer review date and you want to entice the sellers to accept your offer right away, there is the option of offering a little over with other competitive terms, and having the offer expire that night with a note saying that your offer with those specific terms is only valid until that evening at a specific time. I help my buyers consider all of these options for each home of interest, and help them determine what is most savvy for that particular listing, while also keeping their comfort zone and specific goals in mind.

“If the home has been sitting for a while and I feel it’s overpriced, how do we know how much to offer?” 

If a home has been sitting, I will search what similar homes nearby have sold for in the last 60-90 days. I will also reach out to the listing agent to find out how motivated the seller is. 

“Should I include an escalation addendum, or an appraisal gap addendum in my offer?” 

If we determine that there will be competition, and that there is an offer review date, we could include an escalation addendum in our offer. This is a good way to be competitive without offering the absolute max amount we predict it could go for, straight out the gate. It protects the buyer from stretching themselves unnecessarily. Some agents might come back later and say that they are not allowing escalations, and will call for “highest and best” offers before review. Most of the time escalations are allowed. *note that if there isn’t an offer review date, and no mention of other offers, you don’t want to include an escalation addendum- that may entice them to hold out for another offer to trip your escalation clause* For more information about these two addendums, check out my blog post, here. 

“What happens if I make a strong offer and the inspection doesn’t go well?”

If you make a strong offer and after we inspect the home we realize there are a lot of repairs needed, most of the time you are in a better position to get more items taken care of by the sellers. If you had a much lower than list offer, or you got all of your closing costs covered, the seller might try and re-negotiate those terms depending on the expense and amount of repairs you ask for. 

“Should I have an expiration date on my offer?”

The default is typically the next day at 9pm. However, if there is an offer review date and the listing agent says that they plan to stick to said date, It is professional to extend the expiration date to the review date. *If there is no review date, and you’re making a competitive offer for a home that has a lot of interest right away, it could be savvy to make your offer with its current terms, expire that same evening, or early the next day.

“Is there anything else I can do to get the seller(s) to accept my offer over someone else’s?”

See my blog post about crafting a winning offer, here!

In the real estate industry you tend to hear the same slogans repeated and thrown out as truths. There is one I keep hearing recently that really bugs me, and that is that if you are not buying real estate and don’t own property, you are less than, or just plain stupid. I see posts all- of-the time about how people are literally “throwing money away” if they have decided to rent versus buying a home. There are many reasons why this is untrue, but let me throw out a few!

1. You pay money and in return receive shelter. It is not wasting money to rent, and you are definitely not throwing your money away. 
2. Sometimes it is not the right time for someone to buy a home. Maybe you can’t afford the home you would need to be able to make it worth the initial investment long term. Maybe you are unsure of how long you will stay in a certain location and want to stay flexible. 
3. Just because you can buy right now doesn’t mean it is the best time for you to buy. Perhaps you are risk averse and want to have some emergency repair savings first. Maybe you just are not ready! You might not need any money down with some loan programs, but what happens when the water heater goes out? Or you discover a major repair is needed that the inspector wasn’t able to catch during the time of the home inspection? 
4. Your rent is just too good to pass up or not take advantage of. Yes, you’re missing out on some appreciation, but you have amazingly lower than the market rate rent, and are using the additional funds to pay down debts, contribute towards your retirement account, or enjoying experiences you’ll cherish forever. 
5. Sometimes, it is just easier to rent. Owning property takes a certain amount of time, money, or resources. Financially savvy home ownership means upkeep and money invested routinely. If you decide to move, enter into a new financial situation, or another life altering set of circumstances, selling for top dollar will take a certain measure of work. If you decide to rent it out, that will take time, or money on your end.

I don’t think anyone should feel guilted or pressured into homeownership. Decide when the time is right for you, and tune out the rest! For more reasons you might decide not to purchase a home right now, click here. 

Keryn Giguere | Realtor®

Pronouns: She/Her/Hers

Board of Directors, Tacoma Rainbow Center

(253) 691-0688 

My Reviews: http://www.realsatisfied.com/Keryn-Giguere

My YouTube: https://www.youtube.com/channel/UCBxHNs0g18_7yHWH0H8LNbw

My Blog: https://www.windermerepc.com/agents/blog/keryngiguere

3006 N Bennett St, Tacoma, WA 98407

Offered for $275,000

2 Bedrooms, 1 Bathroom

714 Square Feet

6,300 Square Foot Lot

MLS# 1457520

Updated North End starter home! This home was recently remodeled, and sits on a large lot in a wonderful location. Seriously, this location is amazing, and that is ultimately what attracted the seller when he purchased it-

“What attracted me most about the house was it’s location. I’ve always wanted to live in the North End since I was a child. I’ve always admired this area for it’s old trees and uniquely styled neighborhoods. Growing up in Tacoma, I grew to know the Northend for it’s good schools and nice neighborhoods, among other things.

…The other thing I love about living here is it’s close proximity to Point Defiance and the waterfront. Almost every night I would go to Ruston Way to read at the coffee shop, watch a movie, get some dinner, or simply just walk and admire the Puget Sound. Being only 5 minutes away, Point Defiance Park is another place I like to frequent just to walk or hangout by the beach. The house is also a ten minute drive from downtown. The fastest route is going down 30th and then across Schuster parkway. This is a very scenic route overlooking the water in the mornings. The University of Puget Sound is also really close, which made it convenient whenever I wanted to go to  the library to study. Proctor District is also very close and I liked going to Metropolitan Market for grocery shopping.”

Like to go out to eat? You have so many options nearby for good food! Point Ruston has bars, restaurants, and the second location of Ice Cream Social! I like to go to Wildfin for happy hour, and to enjoy the view of the water. You can sit inside by the window, or enjoy their deck and outdoor patio seating. When you’re done grabbing a bite, you can walk along the water, (or rent a bike!), and see a movie at the cinema with comfortable seating.

Five minutes away, you have the Rosewood Cafe, which is a cute little neighborhood cafe. I like to order sandwiches and soups from there. For burritos and beer, check out Brewers Row! Fact- you can get a breakfast burritos at any time of the day. Cooks Tavern is a personal favorite brunch spot of mine. 

What’s so great about this place is that you are close to many fun things to do, but you can come home to your quiet, cozy retreat. There’s a beautiful tree in-front of the house, and the home is pushed back from the street, making it feel that much more private.

This is a smaller home that is laid out well! Right when you enter the home, you are greeted with a nice, open floor-plan.

The home had remodeled when the seller purchased it in 2017! It has a modern feel.

There’s a little dining space off of the kitchen, that looks out to the private backyard.

The kitchen has a light, and clean feel. Deep, farm-styled sink in the kitchen!

The bathroom and both of the bedrooms are located down the hall.

Master bedroom to the left, at the end of the hall.

Second bedroom, down the hall to the right.

This yard is fantastic! Firstly, it is a much larger yard than you typically see. It’s landscaped, but still a clean slate for someone who wants to start a garden, build a greenhouse, or create more hang out space. 

“I enjoyed having people over to watch the boxing fights, and other sport events. If it was summer, we would go to the backyard to make a fire and just talk. I found a lot of peace just being in the backyard, even if I was alone. I really enjoy gardening and this property has more than enough room to be creative with that.”

The backyard is fully fenced! There is a little patio space where you could set up a bistro table, and some outdoor seating. 

Attached, one car garage. There are shelves attached to the wall for additional storage!

Check out the video tour, here. Feel free to reach out to me with any questions about this listing! Text at (253) 691-0688, or pop me an email at Keryn@windermere.com.