The Bar at the Fairmont Hotel

November 2023 is here. You made it! The best is yet to come. Let's move forward together. In this 2-minute read you'll find: Excursions: The Bar at the Fairmont Hotel gets a Makeover Storylines: How I won a negotiation for one client and lost for another Video Humor: Crocodile Hunter Steve Irwin, "Celebrity Home Inspector" Marketplace: Stories I'm watching.

The Fairmont Hotel What places inspire you? I Visited the Olympic Bar at the Fairmont Hotel Bar recently, and they've really done wonders with the place. The renovation is top-notch—sophisticated and modern with nod to its historic roots. I'm drawn to these kinds of spaces, and it's given me some great ideas for my own basement project. Want to enjoy an Old Fashioned with me? My treat.

WHY I WON and WHY I LOST Two buyer negotiations from this month: Guess which was more fun?

I win for the Investor! I lose for the first-time homebuyers. 30-second reads below explain why. In the winning column...

Southeast Magnolia 1904 26th Avenue West 1 BD 1 BA 710 SF $420,000

P: Matthew, this looks like the kind of investment property I want. Matthew: It's perfect for you. But you're not alone. The listing agents says there are 5 offers on it and I don't think he's bluffing. I've worked with him before. P: What? I thought multiple offers weren't happening in this market. Matthew: It happens when investors see a good deal. We're going to have to get aggressive. P: Get it done.

I shifted into Buyer Beast Mode. Here's what it took to beat 5 offers: I sniffed out that my buyer had a plan for this property that would resonate with the seller. Without divulging too much, the home was ADA compliant and my buyer had a plan to utilize that in a special way. You have to tread carefully when you reveal that type of information. I got this one just right. Our initial offer was below what others were offering, but the "mission fit" got the listing agent to call us back, giving us the opportunity to pivot and win! Congratulations, P!

In the losing column...

Greenwood 8309 Fremont Avenue North 4 BD 2 BA 2570 SF $1,088,000 This one hurt! On my first tour with new buying clients, we saw this gorgeous Craftsman near Phinney Ridge. The first tour is about education. I never want clients to feel pressured, and it helps to know that we're just looking on the first tour. But occasionally you see a gem like this, and you have to adjust your philosophy! We were out on a Saturday. The home was reviewing offers the following Tuesday. "This one will probably go above your budget" I said, "but this is a weird market. I'm going to stay in touch with this listing broker. Meanwhile work on getting your preapproval letter from your lender." Tuesday comes around. The listing agent calls: "Matthew, you asked me to call you if we didn't have offers. Well, we don't. Your buyers interested?" This set off a 4 hour sprint to see the house again, with inspection in hand, then go to my office and draft an offer, all the while trying to connect with lenders after hours to see if we could get a preapproval letter. The listing agent calls again: "Just want to let you know another offer came in." We scramble to create an escalation clause that would beat the other offer. We manage to get it signed and sent over with minutes to spare, offering assurances that we would have a preapproval letter shortly. The listing agent calls again twenty minutes later: "Sorry, man, they took the other offer. The sellers felt more safe with the other offer--they had a preapproval letter." The next day we got the preapproval letter by 9:30 AM. We missed by a matter of hours! Dang it! Nothing to do but lick your wounds and get back out there. Now my buyers are ready and they know what a great house looks like.

Humor: Steve Irwin, Crocodile Hunter and Celebrity Inspector

What if Steve Irwin, crocodile hunter, became a home inspector? (not to mention returning to life). Click the image for instagram fun. An Australian client says my accent is spot on! While you're watching the Reel, follow me on Instagram for more informative and occasionally humorous content.

Marketplace

As we start to look to 2024, what should we expect? I predict 2024 will be another slow year, similar to 2023. This does NOT mean that people should refrain from buying or selling. Oftentimes the best opportunities are in down years. The market is much less frantic than it has been since 2018 (the two examples above notwithstanding!) Why do I think 2024 will be slow? Simply put, people are not feeling optimistic. People tend to make big real estate decisions when they feel good about the future. In 2020, the Pacific Northwest was pleased with the election of President Biden and excited about the prospect of Covid Vaccines. Combine that optimism with low interest rates and we had a voracious market appetite for buying and selling homes. Compare this to how people are feeling currently. Headlines right now do not inspire optimism: global conflict, economic uncertainty, and what will likely be a rancorous presidential election. And, to put it mildly, interest rates are not helping. Does this mean you should not buy or sell in 2024? As always, it depends on your situation. There are definitely values to be had. Consider buying if you can restructure your portfolio to purchase real estate in cash, or with a smaller amount of debt. Now is a great time to consider buying a rental unit or a home for kids/ grandkids. Or, if you need to borrow a lot but know that you have reserves to pay for a high mortgage for the next year, you could very well come out ahead in the long run. If you're selling, know that you'll need to price to reflect higher interest rates (overall Seattle is down around 15%), but your value may not be down as much as you think it is, and there are so few homes for sale that your house will most certainly be seen. Don't be distracted from this key fact: HOUSING INVENTORY IS NOT GOING UP. Inventory is our main challenge and very little is being created right now. Because supply will remain low, it means a massive drop in prices is extremely unlikely. On the contrary, it suggests that when interest rates go down again, we'll see an increase in pricing. Contact me today

Is there anyone in your circle that I should be talking to? Refer them to me. I will treat them well.

Contact me today

Matthew Koenig Lic. Realtor® M: 206.234.5574 matthew.koenig@compass.com

Compass is a licensed real estate broker. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

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