The answer to the question of “how to buy a house in Seattle” begins with a consideration of what you can expect to spend.
According to the online real estate resource site Redfin, the median price for a Seattle home stood at $775,000 in January 2024. That price is 2% higher than last year.
The second consideration after the price is to look into the best neighborhoods for buying a house in Seattle.
Ballard is one of the best neighborhoods to buy a home in Seattle, says moving resource site Extra Storage. Ballard is surrounded by the shores of Puget Sound, Salmon Bay, and Shilshole Bay Marina.
It has many real estate opportunities for Seattle first-time homebuyers. You’ll find a variety of styles, such as charming bungalows, cozy cottages, modern condos, and townhomes.
Because of its affordability, outdoor recreational opportunities, and various trendy dining establishments, Ballard stands out as an ideal locale for singles and young professionals. It also draws in families thanks to an excellent school system with acclaimed institutions, including Adams Elementary School and Ballard High School.
Ballard is just one of the many terrific Seattle neighborhoods that you could call “home.” In the following guide, we’ll provide you with all the helpful information you’ll need on how to buy a house in Seattle.
Seattle Market Trends
According to Redfin data, Seattle homes sell after being on the market for 42 days. As for inventory, 381 homes were sold in January 2024, up 4.7 % year on year.
The number of homes available on the market also provides insight into the current Seattle market trends. Real estate resource site Rocket Homes disclosed that there were 1,897 homes on the market in January 2024. In terms of pricing, 174 homes were sold under asking, 125 homes were sold at asking, and 80 homes were sold over asking.
Steps Involved in Buying a House in Seattle
You could walk into a car dealership and drive out with a new car all in the same day. Buying a home in Seattle and anywhere else is quite different. When you understand the steps involved in the home-buying process, it will help you make the right moves to close on your Seattle home.
Get Pre-approved for a Mortgage
Getting pre-approved for a mortgage is an excellent place to start your home-buying process.
That pre-approval means coordinating with a qualified lender who will assess your financial situation and come up with a loan amount that you could qualify for.
A mortgage pre-approval streamlines the home-buying process and boosts your credibility with the homeowner. That is especially helpful for a Seattle first-time homebuyer.
Find a Real Estate Agent
Connecting with an experienced real estate agent is crucial for your home-buying plans. Ideally, find one who is educated and trained at one of the best real estate schools in Seattle, so you can leverage the realtor’s local market knowledge and connections.
Then the agent can guide you to the right neighborhoods that align with your priorities. Your agent can also do all the negotiating on your behalf.
Start Your House Search
Seattle offers diverse neighborhoods, each with its own unique charm. Consider your lifestyle, preferences, and future plans as you explore potential homes on online real estate websites.
It would help if you also attend open houses or schedule private viewings.
Make an Offer
After all your searching, you have finally found the perfect home. The next step is making an official offer on your Seattle house.
Your real estate agent will assist in crafting a competitive offer that considers the current market conditions.
Get a Home Inspection
When the offer is accepted, the next step is to conduct a thorough home inspection. The constant rains in Seattle can cause structural problems, particularly on the roof and foundation.
A certified inspector will assess the property’s condition and note potential issues or necessary repairs. That information will impact the final terms of the contract.
Close on the House
The last step for buying a Seattle house involves closing on the property. Your real estate agent and a title company handle that process.
Closing on a home includes finalizing the mortgage, completing the necessary paperwork, and transferring ownership. You’ll get the keys, and it’s time to celebrate.
Best Mortgage Lenders in Seattle
For many homebuyers, the quest for buying a home in Seattle will involve setting up a loan with a mortgage lender.
Financial resource site WalletHub lists the following mortgage lenders as the best ones to consider in Seattle:
- Fairway Independent Mortgage Corporation
- Movement Mortgage
- HomeStreet Bank
- 1st Security Bank
- New American Funding
- Guild Mortgage Company
- Sterling Savings Bank
- Zions Bank
- Coastal Community Bank
- Bank of America
- U.S. Bank
- Sound Community Bank
- Chase
- HSBC
- Wells Fargo
- Beneficial State Bank
It is advisable for homebuyers to research several mortgage lenders and get quotes from them to compare rates and get the best deal.
Down Payment Requirements for Buying a House in Seattle
A down payment is part of the home-buying process. How much you’ll pay on a down payment depends on many factors. Current market trends find that most mortgage lenders require a down payment of 20% of the home’s purchase price.
Making a substantial down payment will help you lock in a loan at a lower interest rate.
For first-time homebuyers in Seattle who can’t make a sizable down payment, there are a few assistance programs to help with the home purchase.
Down Payment Assistance Programs
The Washington State Housing Finance Commission provides a website portal for down payment assistance in Seattle. Each program has its own set of regulations and financial requirements.
Here are the down payment assistance programs to research:
Home Advantage DPA: This program allows prospective buyers to have a down payment that is only 3% or 4% of the mortgage total.
Home Advantage DPA Needs Based Option: With this program, qualified homebuyers can receive up to $10,000 to use with a Home Advantage loan.
Opportunity DPA: The House Key Opportunity loan provides up to $15,000 for borrowers.
Veterans: This is a unique program for military veterans that provides down payment assistance of up to $10,000.
HomeChoice: HomeChoice can give up to $15,000 for buyers with a disability or disabled family member living with them.
Tax Implications of Buying a House in Seattle
Seattle homeowners do not pay property taxes to the city but to King County. The current tax rate is 1.025 percent. The money raised through property taxes goes towards supporting specific city and county-wide budgets and expenditures.
Certified property assessors determine property values. The assessment process involves an examination of property size, age of the home, curb appeal, and renovations. The county mandates the reassessment of properties every five years.
How can I deduct my mortgage interest and property taxes from my income taxes?
It’s nice to get back some of the money you’ve put into your home. That can happen in the form of mortgage interest and property tax deductions.
Here’s a breakdown of several deductions:
- Interest on the Mortgage for Your Main Home: This deduction extends to various properties, including houses, co-ops, apartments, condos, mobile homes, houseboats, or similar residences. The property must serve as collateral for the loan from which interest payments are deducted.
- Interest on the Mortgage for a Second Home: This deduction applies to mortgages on secondary residences, but only if that second home is listed as collateral. If this is a rental property, the taxpayer must reside in the home for more than 14 days or more than 10% of the days it is rented out annually to take the deduction. The deduction is limited to one second home.
- Mortgage Points You Have Paid: Mortgage points are a form of prepaid interest that can be deductible if it is paid directly to the lender at closing. In some cases, the deduction may be immediate. With other types of loans, the deductions are spread out over the loan’s lifespan. Consulting a tax professional is recommended for clarity for this deduction.
- Late Payment Charges on Your Mortgage: You can deduct late payment charges, provided they are not associated with a specific service.
Common Closing Costs Associated With Buying a House in Seattle
Beyond the mortgage and insurance payments, you will also have to make closing costs. Homebuyers in Seattle can expect these closing costs to be 2% and 5% of the property’s purchase price.
While closing costs are a part of the home-buying process, there are ways to reduce those costs. You might work out a deal with the real estate agent involved in the deal to lower their commission.
That often happens when the agent represents the buyer and the seller. Whenever possible, look for ways to negotiate those costs.
Tips for Buying a House in a Competitive Market Like Seattle
The following tips can boost your chances of finding and closing on your Seattle home.
- Get Pre-Approved for a Mortgage Before You Start Shopping
Before shopping for your Seattle home, consider securing a pre-approval mortgage. A pre-approval involves completing a mortgage application and supporting documents. That will put you in a stronger buying position, which is vital in a competitive market.
- Be Willing to Compromise
A comprehensive list of must-have features keeps you focused and stops you from settling for a property that doesn’t align with your requirements.
- Be Prepared to Act Quickly
In a competitive housing market, quick decisions are a must. Don’t linger on properties that don’t match your needs. Instead, focus on properties that meet your requisites. Once you identify that property, be prepared to make a fast offer. That could mean making the offer within hours of seeing the home.
- Consider Making a Competitive Offer
A strong first offer is critical in today’s competitive Seattle housing market. Work with your real estate agent to draw up an offer that will stand out. That might mean offering a higher price or a bigger down payment. You can also streamline the offer process by minimizing contingencies, such as appraisal gaps and lengthy inspection periods.
What to Look for When Inspecting a House in Seattle
A home can look perfect on the inside and outside, but look closer. There could be problems that aren’t visible. That is why a home inspection is crucial for the home-buying process. Here’s what you need to look for during your home inspection:
Structural Integrity
The structural integrity inspection involves examining the property’s foundation, walls, and overall framework. The inspector will look for any signs of cracks, shifts, or unevenness in the foundation and the condition of load-bearing walls.
Electrical and Plumbing Systems
An inspector must thoroughly check the electrical and plumbing systems to guarantee they are up to code and in good working order. They will check for any outdated wiring, exposed wires, or signs of water damage near plumbing fixtures.
HVAC System
Inspectors will investigate the home’s HVAC (heating, ventilation, and air conditioning) system to confirm it is energy efficient and in good working order.
Roof
The inspector will examine the roof for wear and tear, missing shingles, or potential leaks. They will assess the overall condition, age, and potential need for repairs or replacement.
The goal is to avoid unforeseen expenses after purchasing the property. Of course, if the home does need a new roof, you might be able to negotiate that cost off the price.
Pest and Termite Damage
The inspector will check for signs of pest and termite damage, particularly in wooden structures. Seattle’s lush greenery can attract pests.
It is vital to inspect any wooden components of a home, such as beams and frames, for any telltale signs of damage.
Common Red Flags to Be Aware of When Buying a House in Seattle
When purchasing a home in Seattle, keep an eye out for common red flags. The most important red flag would be an overpriced home. You need to carefully assess the market and property prices to ensure the price is right.
Another red flag to look for is a home in need of major repairs. While a fixer-upper might appeal to those with a knack for renovation, unforeseen structural issues or extensive damage can quickly escalate costs. That will turn what seemed like a bargain into a financial burden. Additionally, homes situated in flood zones or other high-risk areas can have the potential for increased insurance premiums.
You also want to find out about previous issues such as persistent leaks, mold, or structural concerns. Those may indicate ongoing challenges that could impact the property’s value and livability.
Finally, look out for homes with liens or other encumbrances. Those kinds of legal complications can lead to delays in the buying process and potentially put the ownership of the property at risk.
Best Resources for Finding Houses for Sale in Seattle
It has never been easier for prospective homebuyers to create a “search list” of properties. That list can be created through online sites dedicated to listing properties.
Consider the following approaches to buy a house in Seattle:
Online Websites
For most couples, the search for a new home begins online, and there is no shortage of available websites that can help in that search. Bookmark the following sites to get your house hunting started:
MLS Listings
Another effective option for researching homes is through a Multiple Listing Service (MLS). That is an extensive database that offers a comprehensive overview of homes on the market, detailing key features and pricing, and often includes visuals.
Open Houses
Open houses are another valuable method for prospective buyers to evaluate potential homes. Attending open houses provides an opportunity to interact with real estate agents or homeowners, seek immediate answers to queries, and gain valuable insights that might not be evident from online listings alone.
Real Estate Agents
Experienced real estate agents possess a wealth of knowledge about the local market. These professionals can customize a home search that matches your specific needs.
Start Your Search for a Seattle Home Today
Seattle is one of the nation’s fastest-growing cities and is a great place to have a home with its beautiful setting. It provides a wide assortment of real estate opportunities for singles, families, and investors. By following these steps and tips for buying a home in Seattle, you will be making an informed decision. Start your search for a Seattle house today.
