Seattle Real Estate 2025- What Buyers Need to Know

Christian: [0:01] Hello, hello, and welcome to another episode of the Awesome in Seattle podcast. This is your host, Christian Nossum, of the Awesome Nossum Group at Wilson Realty Exchange, Inc. And today I am joined by the lovely Joanna Beecher, who is also an agent here on the Awesome Nossum Group.

Joanna: [0:17] Yes. Well, thank you, Christian. And today's topic is a big one, and it's for anyone who's planning to buy in 2025, okay? Mm-hmm. So we're breaking down what Seattle home buyers should expect in 2025. We'll cover key topics like the buyer brokerage services agreement, everybody's favorite, timing your home purchase with your lease ending, competitiveness in the market, and mistakes to avoid in 2025, and much more. So wanna dive in?

Christian: [0:47] Let's do it.

Joanna: [0:48] Okay.

Christian: [0:48] All right, so the first step if you're considering buying is always getting educated. Well, this is our opinion.

Joanna: [0:55] Yes.

Christian: [0:55] A lot of people just jump right in and start looking at houses, and they go about it pretty much backwards, in our opinion. The common sense way would be, first you get educated. So for us, our first step with all of our potential clients and p- you know, people that are thinking about maybe buying a house, is to always attend our free Beers and Home Buying class. You can also educate yourself by listening to this podcast. If you haven't already been to one of our free Beers and Home Buying classes, just go to beersandhomebuying.com (opens in a new tab), beer like the drink- uh, and homebuying.com and you can see where those are After you do that, then we gotta kick things off with something that buyers need to get familiar with, and that's something called the buyer brokerage services agreement. This is a new state law as of January 1st, 2024, where it basically outlines the relationship between you and your real estate agent or broker, and it is now standard practice in the state of Washington.

Joanna: [2:04] Yes. And by signing this agreement, you're committing to work exclusively with your agent, and they're committed to providing you with the best possible service, and it helps set expectations up front, right? It ensures you're both on the same page as you go through your home buying process. So think of it like you're hiring your expert guide, and they're there to help you navigate the complexities of the home buying process for you. If you're shopping for homes in 2025, expect your agent to bring this up early in the process. It's very important before they do any real estate work for you-

Christian: [2:43] Mm-hmm … Joanna: that this is a signed agreement, an explained agreement between b- all of you in this process. A quick tip from me to you is when discussing this agreement with your agent, ask about their communication style, their availability, and their strategies for finding homes that fit your criteria. Make sure their approach aligns with your needs. Yeah. Yeah, so basically with the BBSA, the buyer brokerage services agreement, you're choosing and agreeing to work with this agent in your buying process. That's the big overall gist of it. So if you're gonna choose someone, make sure they're on the same page as you, and- Yep that their process makes sense for you. We have a very different one the majority, than the majority of agents out there, so that's probably why we have so many people that do work with us, but we're not for everybody. Yep. So make sure that if you're gonna work with someone, it makes sense for you and how you like to work.

Joanna: [3:43] Yep.

Christian: [3:44] Next up, let's talk about timing, specifically how to align your home purchase with the end of a lease. Now, this happens a lot, so people, you know, they're in a lease for a year or whatever, and they're like, "Ah, how do I figure out how to time this up?" 'Cause that's not necessarily- Yeah … easy. So Joanna, what do you, what do you got for us?

Joanna: [4:07] Well, this is really important, 'cause- currently and always, there's always buyers that get caught in this tough spot of either paying for a lease and a mortgage simultaneously, and, you know, they just, they don't wanna do that. And they're, they either rush to find a home because the end of their lease is coming up and they don't wanna go month to month, or they're trying to plan it out just right, like a year or a few months in advance. And it's, it's a really, it's, it's tough to time, put it that way.

Christian: [4:38] Mm-hmm.

Joanna: [4:38] But you do… This is one important thing to talk about with your agent and your lender, you know, just to make sure that everybody's on the same timeline, and especially just knowing when you wanna start your search, and that you could surprise yourself and find something very quickly. So what does that look like? You know, there's all these things to talk through. And don't just try to, like, get it right in your head. You know- Yeah … you h- this is why you hire someone to work with, 'cause we can help- Sure … with that.

Christian: [5:07] Yep. Totally. I remember, too, if you're in a competitive situat- competitive situation, like if you're making an offer and there's three or five or 10 other people making an offer on the same house, that closing timeline can sometimes shift because you might say- Yeah "Well, ideally I would like a 30-day closing." But in order to get your offer accepted, you need to close in 10 days or 14 days so that you can beat out those other buyers without any additional cost to, or any additional higher price, but you're closing that timeframe gap, which is a big selling point to the seller. So adding a little bit of cushion to your plans is always a good idea. Really just trying to stay flexible. It's almost impossible to totally get this timing perfect because you gotta find the right house in the right timing where you can actually close, you know, in the perfect ideal timeframe, and it's probably not gonna happen, so don't even assume that it's going to, 'cause it just probably won't. Right. So assume that you're gonna have some overlap of some sort, which at the end of the day isn't a big deal.

Joanna: [6:16] No.

Christian: [6:16] Like, moving out one weekend and having to clean it and move into the next, the next one that same weekend, like, that's super stressful. So getting some extra time can be a big plus. Um-

Joanna: [6:27] I agree with you on that. Yeah.

Christian: [6:29] Now, that said, a couple things that we like to always recommend is before you start looking, ask your property manager, "Hey, if I do break the lease early, if for some reason I find something three or six months early or one month early or two months early, whatever, can I break the lease, and if I do, what is the penalty?" So know that penalty upfront. Another thing, too, is saying, "Hey, can I negotiate a month-to-month lease extension?" so that if you are looking for a house and you don't find one by the end of your lease term, that you can still stay there and you don't have to move twice back to back. Um, generally that month-to-month lease extension is gonna be a little bit more every single month. In the big picture, that's probably less expensive than moving, like I said again and again. Just to save a little bit of money, paying an extra 200, 300 bucks more to stay and not have to move for a couple months is probably worth it.

Joanna: [7:28] Yeah. So, we have some market predictions, right, for 2025, but we actually have a podcast that we're gonna do about that. Yes, yes. So we won't go in depth, but we did wanna talk about competitiveness and, you know, what we might expect in 2025. So just to briefly, you know, glaze or graze over, um, this, basically we're predicting patches of competitiveness, and that is especially if rates are to drop.

Christian: [7:56] Mm-hmm. Yeah, exactly, and if rates do drop, you're likely gonna see mar- more buyers jump into the market, which could lead to bidding wars in certain areas or certain specific types of homes. So the popular areas that everyone wants to be in, kinda like north of downtown, that's a big, big one in Seattle. Mm-hmm. A lot of the east side. These typically hot markets, that's where this trend is expected to continue, just 'cause we just don't have enough supply already. And so when you have supply and demand out of whack, that's when you see multiple offers on, on homes.

Joanna: [8:33] Yeah. But just, you know, to stay ahead of it, just making sure that you're prepared, getting… You know, having your preapproval letter ready, knowing your budget, your max budget, that's huge, and knowing that you don't, you shouldn't probably hesitate when you find that home that you love.

Christian: [8:50] Yeah.

Joanna: [8:50] So.

Christian: [8:51] And I'd even say do it a step further and get fully pre-underwritten upfront. You can get-

Joanna: [8:56] 100% agree.

Christian: [8:57] You can get un- underwritten. That's gonna be way stronger than just getting pre-approved, so.

Joanna: [9:02] Yeah.

Christian: [9:02] All right. Let's talk about when a home pops up that fits your criteria, you need to see that thing ASAP.

Joanna: [9:08] Yes, and so I know on listings there are virtual tours where you can, you know, scroll with your mouse through the house, but touring in person is super, super important. You cannot compare what you see in pictures to what you see and experience in person. So in a competitive market, just waiting too long to schedule a showing could mean missing out on something entirely. And yeah, just knowing that seeing it in person could make or break how you feel about the house.

Christian: [9:38] Mm-hmm. Yeah, it's pretty tough to understand if there's foundation issues, sloping in the floors, if there's bad smells.

Joanna: [9:47] Smells.

Christian: [9:47] These are things that we see a lot in person. You can't get that thing when you're online, like - Joanna: Yeah, and I'm gonna say it too. I'm gonna just say vibes. Mm-hmm.

Joanna: [9:57] I know- It's

Christian: [9:58] a very good point

Joanna: [9:59] it's, when we say home buying is emotional, that's part of it. If there's… I've had people convinced they will absolutely love a certain house. They get there- It just starts right away. The vibe is off. Yeah. They go in, it gets worse. So it's- Yeah. It just… Yeah. Get- do yourself a favor and see it in person as soon as you can.

Christian: [10:20] Yeah. Yeah, and remember, the sooner you see the property, the sooner you can make an informed decision.

Joanna: [10:25] Mm-hmm. So

Christian: [10:26] make sure you have some, like, when you are in the thick of the home buying process, make sure that you block out maybe some afternoons or evenings or lunch appointments or something like that on your calendar so that you can actually go see these houses, kinda especially Thursday, Friday, because that's when homes generally come on the market, Wednesday- Mm-hmm Thursday, Friday, so that you can move quickly. And if you have those time blocks on your calendar- Yeah … you have that ability, versus always trying to fit it in here and there.

Joanna: [10:57] Yeah.

Christian: [10:57] And a, and a quick tip, you know, set up alerts for new listings, and coordinate with your agent to schedule the same day or next day showings whenever possible. Like with us, it's super easy. You can just text us. Like, we'll, we'll respond. Unless we're with a client, we're gonna respond right away, especially over text. Email sometimes is a little bit slower, just because we get so much email 'cause we're dealing with offers that have already been accepted, and the escrow company and title company and all that stuff. They need paperwork here and there, but that's not like I need this right away. But texts, we get those, we're like, "All right. Let's schedule that. Let's get something figured out. Let's put it on the books right away." Yeah. 'Cause we understand how important it is to see something ASAP.

Joanna: [11:38] Oh, yeah. And, you know, kind of, this is kind of working backwards a little bit, but, like- One of the big things that if we haven't made it clear at this point, I think that we wanna just hammer it home right here, is becoming, like, clear on your buy box-

Christian: [11:54] Mm-hmm

Joanna: [11:54] with your agent, which will hopefully be us. Um, but, you know, define exactly what you're looking for. Know exactly what you're looking for, size, location, price point. All of these are extremely important things to have a very clear picture on, and we help you with that. That is part, a huge part of our beginning steps for you, so that you're not just like, "Well, I have this max budget, and now I'm gonna go look at Redfin, and who knows what I'll find and where I'm gonna find it." We don't want that. That's chaos. Yeah. That's emotion that you don't need to be experiencing. Just, you know, the confusion part of, like, "I could go anywhere." We like to get you very clear on where you're gonna find what you want. Mm-hmm. So, you know, you need to find an agent, in our personal opinion, that helps you do that.

Christian: [12:40] Yep. And we have a very specific and personalized approach to that that no one else does, and that speeds up people's home buying process, but also their comfort level so quickly just by doing the one thing that we do that no one else does. And we can talk about that. If you come to the beers and home buying class, we will share that. Yeah. But having that clear buy box, it not only helps you stay focused, uh, it also ensures that your agent can act quickly when the right property comes along, and that can make all the difference in a fast moving market. And it also helps us, as your agent, understand, hey, if we have a listing that's coming up a few months down the road, or weeks or whatever, we might be able to slip you in before it even comes on the market because it mi- meets your, your buy box perfectly. Yep. Which we've done over the last year a few times, and it's, it's been a win-win for everybody. Um.

Joanna: [13:37] Yeah. Everybody's happy when that comes up. Yeah. Especially in a competitive market where the homes would probably have been in a competitive situation.

Christian: [13:46] Mm-hmm.

Joanna: [13:46] You know?

Christian: [13:47] Exactly. Good tip. We like to give these tips out throughout this episode. Write down your top priorities and rank them, and then share this list with your agent so that we can tailor your search to your needs. So really become clear on what is the most important, you know, top 5, 10, whatever, however many i- items you need or desire, and then rank them. And there could be, you know, three number one things, like you have to have these three things, whatever that is. That's fine. It's not like it has to be one, two, three, perfectly aligned like that. So.

Joanna: [14:19] Yeah. Let's talk about loan limits.

Christian: [14:22] Mm. Yes.

Joanna: [14:23] Uh, new loan limits. You know, this could expand what the buyers can afford, which is awesome. Yeah. So, yeah.

Christian: [14:30] Yeah, so for 2025, the conforming loan limit in King, Pierce, and Snohomish County jumped almost $200,000, which is crazy. Yeah. So it's now over a million dollars. So it's now $1,037,300. Uh, so you're asking, "What, what the heck is a loan limit and why does that matter to me?" Well, the higher the- And a house … yeah, the higher the loan limit means that you might be able to qualify for a more expensive home while still using a conventional loan. Conventional is kind of the least expensive, um, if you go over that loan amount. So the loan you get can go up to 1,037,300. Wow. So basically, 1,000,040. That's an easy rounded number. Yeah. Um, so with, you know, as little as 3 or 5, 3 and a half, 5% down, you can get a loan of over a million dollars now, which

Joanna: [15:24] is- That is wild.

Christian: [15:26] Yes. And what's even crazier is if you're gonna buy a duplex, triplex, or fourplex, those loan limits jump up. And for a fourplex, it was just, it was like $30,000 below $2 million. So you could almost get a $2 million loan with 5% down.

Joanna: [15:46] That is, that's amazing, actually. It is amazing. That helps- It is amazing people a lot,

Christian: [15:50] actually. Yes,

Joanna: [15:51] yes.

Christian: [15:52] That's great. So this, this will help a lot of people get into maybe those little bit more expensive homes that, you know, if they didn't have a huge down payment, they couldn't get into. That was kind of limiting how much they could afford. Yeah. That's gonna jump up. Um, and the reason this is important is because those jumbo loans, like we talked about, they usually have a higher interest rate. Their criteria is much more harder to qualify for, and it, it, they're just more of a pain in the butt, to be honest, to, to get. So this is a huge change for 2025, and it's gonna help a lot of people.

Joanna: [16:26] Well, speaking of things that will help a lot of people, we have home buyer programs. Yeah. So don't wanna forget about those. Mm-hmm. These are often local or state programs designed to help first-time home buyers with down payments, closing costs, or even lower interest rate.

Christian: [16:41] Yeah, and there's a lot of these programs. Well, maybe not a lot. There's a few of these programs out there. The most popular one in Washington is the Washington State Housing Finance Commission's down payment assistance program. They have… All of these home buyer, first-time home buyer programs do have income limits. The, and those, this criteria changes a lot, so if you are thinking that you might be able to qualify for this and you would like to explore that further, just reach out to us, DM us, text us, email us, whatever. We can connect you with a lender that we know that works really, really well in these programs, 'cause there's a lot of lenders that can qualify to help you get this loan- Not all of those lenders do it very often, and so with these changing guidelines that they have, they might give you some bad advice. So you actually wanna work with someone that knows this program inside and out, knows the tips and tricks on how to make it a smooth process, and we definitely have someone that we can recommend for that. And, and that's where if you are thinking you wanna do that, reach out to us, we'll connect you with them, and you can get those recommendations kinda tailored specifically for you to see if that is something that makes sense

Joanna: [17:52] Yeah. So let's finally talk about DADUs and ADUs. So these detached and attached accessory dwelling units are becoming our new townhouses.

Christian: [18:06] Mm-hmm. Right?

Joanna: [18:07] Yeah. Yeah. I love

Christian: [18:08] them. Yeah, and if, if you can't afford a standalone single-family house with the white picket fence in the front yard and the big backyard, a DADU, a detached ADU, or an ADU, otherwise known as an acce- accessory dwelling unit, these can be great alternatives, and they're often more affordable and allow you to live in a more desirable neighborhood.

Joanna: [18:28] Mm-hmm.

Christian: [18:28] Because they're generally built in the backyard or alongside a house, a single-family house that was there, and the yard's a little bit smaller even though you do get one. They're also a fantastic option for multi-generational living or even for generating rental income. Like, if you wanted to, if you are able to buy a single-family house and then you build one of these DADUs or ADUs, you can keep that thing. You don't have to sell it. You can sell it, which is amazing. Mm-hmm. And we can, I can talk for hours and hours on DADUs, 'cause I develop these and sell these and, uh, and have… Well, we haven't kept any yet, but we will be keeping some, I'm sure, at some point. Cities like Seattle have been pushing for more DADU and ADU development to increase housing options. Also, for them, for the city, they like that extra property tax, because that generates a lot of revenue for them. So-

Joanna: [19:24] Yeah … Speaker: kind of selfish for them, and it, and but it works. It also, it kills two birds with one stone. Yeah. Creates more taxes, and it creates more affordable housing. So a good tip here, check zoning laws in your preferred neighborhoods and consider properties with exi- with existing DADUs, DADUs, or, or the potential to add one as a way to potentially lessen your, your total overall expenses, and maybe even lessen how much you have to pay out of pocket, because you have a rental unit that can help offset your mortgage. I think they're a great option-

Christian: [19:59] Yeah … Joanna: for first-time homebuyers. Yep.

Joanna: [20:01] In summary, 2025 is shaping up to be a very exciting year for homebuyers in Seattle. Whether it's understanding new agreements, navigating competitiveness, or exploring alternative housing like DADUs and ADUs, what we know is preparation is key.

Christian: [20:19] Yep, that's right. And remember, working with an experienced agent can make all the difference. If you're thinking about buying a home in the Seattle area, we don't just work city-specific in Seattle. We're kind of on the whole Seattle metro Puget Sound region. We go all over the place, because we have a nice team that can do that. So, um, if you are interested in working with us, don't hesitate to reach out at all. We are, again, the Awesome Nossum Group. We would love to help. You can always come to one of our classes at, uh, beersandhomebuying.com (opens in a new tab). They're totally free. Or if you're just ready to chat, maybe you've already come to a class, maybe two, three, four, five, six, seven, eight, nine, 10, 11 years ago, 'cause that's how long we've been doing them- uh, you can, you can just schedule a strategy session with us right on our website, AwesomeNossumGroup.com.

Joanna: [21:07] Yeah. Well, thanks for tuning in to the Awesome in Seattle podcast, and don't forget to subscribe for more real estate insight and tips. And as Christian already said, you can find us at AwesomeNossumGroup.com/schedule to book a chat with us.

Christian: [21:24] Awesome. We'll see you next time on the Awesome in Seattle podcast. Yep.

Joanna: [21:27] Thanks, guys.

Christian: [21:28] See ya.