Selling to an iBuyer vs. Selling With a Realtor

Are you better off selling to an iBuyer? The answer depends on your circumstances.

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Should you sell your home to an iBuyer?

First, let’s review what an iBuyer is. An iBuyer is a company or investor who can make a cash offer for your home and close quickly with little hassle. You can pick the closing date, when you want to move out, and not have to worry about making any repairs to your home or staging it for the market. The downside to this convenience, though, is that you end up selling at a discounted price.

There is no “right” or “wrong” answer as to whether you should sell to an iBuyer, so let’s look at the specific details of selling this way versus selling with a Realtor such as myself.

Essentially, it’s the same thing as selling with a wholesaler versus selling with a retailer. In this case, the iBuyer is the wholesaler: They make their offer price appealing up front, but when you factor in the associated costs of selling, you don’t net as much as you think you will.

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Essentially, it’s the same difference as selling with a wholesaler versus selling with a retailer.

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Selling to a retailer means you’ll have to go through the extra steps of preparing your home for the market, but their job is to get you the most money possible, so your chances of earning greater net proceeds are much higher.

This is why it makes more sense for most people so sell the traditional route—with a Realtor. There are certain circumstances when it makes more sense to sell to an iBuyer, though. If you’re in a situation where you need a significant influx of fast cash, iBuyers are a good option. Also, keep in mind that there are plenty of iBuyers out there to choose from, and I’d be happy to help you pick one if you do decide to go this route. There will never be a lack of investors willing to buy your property quickly and at a discount.

Remember, the Hauer Home Team is here to serve you and the people you care about, so if you have any more questions about this or any other real estate topic, don’t hesitate to reach out to me. I’d love to help you.

Where Are the Hottest Areas of Our Real Estate Market?

The real estate market here in Pierce County is hotter in some areas than others. Here’s what you need to know.

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I’ve got a quick update for you today so you know what’s going on in the Pierce County real estate market as we head into the 4th quarter of 2019. The latest Q3 numbers are in, so I’ll give you a quick look at what I’ve been noticing out there. For starters, the hottest spot in all of Pierce County is Central Tacoma. Year over year, we’ve seen a 14.7% increase in home values there. The median home value is $351,000. On the other end of the spectrum, we have Gig Harbor. This area has seen 0% appreciation since this time last year, but still has a median sale price of $500,000. This is the highest median price in all of Pierce County. Inventory is down 15% from where it was last year as well.

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Gig Harbor homes didn’t appreciate much, but they still have the highest median price.

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Throughout all of Pierce County, we have about 20% fewer homes to choose from than we had at this time last year. This is great news for sellers who have been on the fence. With decreased inventory, you have that much less competition for your property. This will give you a much better position and a much greater chance of selling for top dollar.

Our market is much more challenging for buyers at the moment. No doubt about it. That being said, I would encourage you to buy now. My wife and I are actively purchasing properties right now even though it's a “seller’s market.” Interest rates are still low, and are only projected to increase from here on out. We have helped buyers in this kind of market and would love to help you too.

If you have any questions for us in the meantime, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

Should You Sell Now or Wait Until Spring?

 If you’ve been wondering whether the chance to sell your home this year has passed, today’s message is for you. 

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A lot of homeowners have recently asked me whether now is a good time for them to list or if it would better for them to wait until spring. Well, given that our inventory (the number of homes available on the market) has dropped by 15.55% since last October, one thing is clear: The market is in need of more listings. So if you have been thinking of selling, doing so now would afford you the opportunity to enjoy low competition and high buyer demand. Waiting to sell until spring or summer would nullify this, as more homes hit the market during those times of year. And, as you probably know, high supply equals low demand, and low demand equals less money in your pocket.

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The bottom line is that it’s a great time to sell.

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Selling in the fall or winter also generally draws less foot traffic through your home. This may sound like a bad thing, but the truth is that handling a large number of showings can be quite the hassle. Having fewer buyers turning up to tour your home can actually work to your benefit, especially in light of the fact that buyers who are out looking for properties at this time of year tend to be much more serious than the “tire-kickers” that start to appear in the spring and summer. 

The bottom line is that it’s a great time to sell. If you have any other questions, would like more information, or would like to talk about your specific property, feel free to give us a call or send us an email. We look forward to hearing from you soon.

How Soon After Purchasing a Property Can You Sell It?

How soon after you purchase a property are you able to sell it? Find out today.

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We’ve all heard the term ‘forever home’ before, but sometimes you just don’t end up staying in a home that you thought you’d live in forever. When my wife and I bought our forever home, we shortly thereafter moved out of it. We held onto it as a rental and eventually moved back in; you just never know what life has in store for you.

Here are some things to be mindful of when it comes to selling your house, as well as my recommendations about how soon after purchasing it you should do so:

First, my rule of thumb for selling your home is to sell it after you’ve lived in it for two out of the last five years. This will help you maximize the profits of your sale. You won’t have to pay a higher capital gains tax rate; in fact, you probably won’t pay any tax whatsoever. For a single person, you’re exempt from $250,000 worth of capital gains tax on any profit you have from the sale. For married couples, you’re exempt from $500,000.

If you’ve been in the house for less than a year, you’ll pay quite a bit in short-term capital gains tax at whatever your taxable income rate is. In short, there are significant tax advantages to staying in your home for a year and a day, and even more for staying in the home two out of the last five years.

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My rule of thumb for selling your home is to sell it after you’ve lived in it for two out of the last five years.

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Some other factors to keep in mind are the rates of appreciation and growth of home values. We’ve had phenomenal appreciation and growth in local real estate values over the last several years. Since the 1940s, real estate has appreciated by 5% every year on average, and our own local market often appreciates at double-digit rates.

Once commission, excise tax, title, escrow, recording fees, and transaction management fees have been factored in, the typical cost to sell a house works out to be around 9% or 10% of the sales price. That’s why I recommend you stay in the home two out of the last five years; if the home appreciates 5% per year, you’ll make at least your sales costs back just by waiting, on top of the tax advantages.


Hopefully, this helped clear up some of the confusion surrounding the topic of selling your home. If you have any questions about today’s post, don’t hesitate to reach out to me. I’d love to speak with you.

8 Little-Known Tips to Get You the Most Money Possible

Here are eight secrets that will help you fetch top dollar for your house when it comes time to sell.

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There are eight little-known tricks that will help you sell your home for the most money possible:

1. Improve your home’s curb appeal. This is a common tip, but here’s a secret: start with your mailbox. If your mailbox is clean, presentable, and stands up straight, it’ll help make a great first impression.

2. Use your rooms correctly. If you’re using your dining room or office space as an extra playroom, buyers will have a hard time visualizing the layout of the home and the potential uses for each space. To show off your home’s true potential, be sure to stage it.

3. Reglaze your bathrooms. Older homes tend to have outdated features that aren’t attractive to buyers. For just a couple hundred dollars, you can actually reglaze your bathroom fixtures like your toilet and sinks with a white, waterproof coating to give the space a brand-new feel without making costly replacements.

4. Make a story out of your home. Frame pictures you have of living in your home and place it where buyers can see it during showings. Seeing the memories you’ve made there and all the ways you’ve used the space can really resonate with buyers and help create an emotional connection between them and the home. Logic makes us think, but emotions make us act.

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Seeing the memories you’ve made there and all the ways you’ve used the space can really resonate with buyers and help create an emotional connection.

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5. List your home at 10% under its market value. Why? Data shows that if you list your home 10% under market value, you’ll attract 75% of the buyer pool, compared to only 30% if you list it 10% over market value. Great homes that are also more affordable will draw many buyers out of the woodwork. As long as you’re working with a solid marketing professional who can get the word out to the right number of people in the least amount of time, you’ll end up in a great spot.

6. Provide insider information with buyers. This is your opportunity to share what it is you love about the community. Give them the scoop about great things that go on around the home so they can start to feel excited about the prospect of living there

7. List the special features of your home. Make a whole list of your home’s special features so that buyers know all of what you’ve done to make the home more comfortable and accessible, like the new air conditioning unit you bought or the heated floors in the bathroom.

8. Create a video tour of your home. This is another great way to create an emotional connection for the buyers, and it will give them a good insight into what the property is all about. I will say, though, that not every property deserves a full-on video tour; for some homes, a 360° video tour can actually be detrimental. Be sure to only show off the best things that your home has to offer.

Hopefully, these tips will help you get the maximum value for your home when you find the right buyer. If you have any questions about selling your home, don’t hesitate to reach out to us. We’re here to be a resource for you.

An Update on Tax Changes in Real Estate

 For a certain segment of the market, selling a home is going to get a little more expensive. Here’s why.

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In the state of Washington, the real estate excise tax is currently made up of a 1.28% rate from the state and a .5% local tax to total 1.78%. That’s all about to change come January 1, 2020.

If you’re considering selling, especially if you have some higher-end real estate or commercial property, it’s going to affect you. It won’t have a huge impact on the typical seller below that, however.

The 1.78% excise tax is due at the time of sale and is separate from a capital gains tax.  On January 1, the total excise tax on homes in the $0 to $500,000 range will be 1.6%. From $500,000 to $1.5 million, that tax will remain the same at 1.78%. For homes valued in the $1.5 million to $3 million range, you will see a significant jump to 3.25%. For homes $3 million and above, the number is 3.5%. It’s based on the sale price of the home and is doubling for some property owners.

If you have any questions about this upcoming change or anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

How to Handle Multiple Offers as a Seller

Are you overwhelmed by the offers you’re getting on your home? These five tips can help.

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Receiving multiple offers on your home can be an exciting—yet daunting—experience. If you aren’t sure how to choose the right offer, these five tips will help:

1. Be organized. It can be hard to keep track of every aspect of every offer you receive without any sort of system for comparing them side by side, so putting each offer into a spreadsheet or something similar is always a good idea. This way, you’ll never struggle to remember which offer is which.


2. Set a deadline. Make it clear to potential buyers that you will only accept offers up until a certain date. This will not only instill a sense of urgency, thereby making your listing more attractive, but it will also help you to keep moving forward with the home selling process.

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Always make sure a buyer is truly qualified to purchase your home before going under contract.

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3. Get to know potential buyers and their agents. You don’t need to know everything about every buyer by any means, but it’s good to at least understand their motivations. When you know what’s driving people to make an offer on your home in the first place, this will put you in a much stronger position when it comes time to negotiate price, terms, and conditions. Certain information about potential buyers may also sway your decision to accept (or reject) their offer.


4. Make sure the buyer is qualified and that their lender is competent. If a buyer is planning to use financing to purchase your home, as most buyers will, then you need to verify that they’re truly qualified to close.


5. Accept a backup offer. While following the steps we’ve already covered can help you to choose a buyer who’s unlikely to back out, unforeseen circumstances can arise. Therefore, it’s always a good idea to accept a backup offer. This way, you’ve got a “plan b” to fall back on.

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Join Us for Our VIP Lake Day on July 3

On Wednesday, July 3, we want you and your family to join us for a day of fun at Mason Lake. Here are all the details.

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The Hauer Home Team wants to show our gratitude for your support by inviting you to our upcoming VIP event. It’s going to be a full, fun day out at Mason Lake on Wednesday, July 3. We’ll have boating, a live band, a barbecue, and much, much more. We’ll end the night with a fantastic firework show around 10:30 p.m. We hope you and your family can join us. All you need to do is click here to RSVP to make sure we get enough food and drinks for all. To learn more, watch this short video.

The Latest Trends in Pierce County Real Estate

As we head toward the halfway point of the year, it’s time to take a look at some recent market trends and what they mean for buyers and sellers. Here’s what you need to know.

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We’re nearly halfway through the year already. Can you believe it? Today I thought it would be a good time to give you a quick update on some trends that I’ve been seeing in the Pierce County real estate market so far in 2019.

For your convenience, I’ve provided timestamps below that will direct you to various points in the video. Feel free to watch the full message or use these timestamps to browse specific topics at your leisure:

0:30- A look at the current absorption-based pricing index (aka supply and demand)
1:05- How pricing trends have changed in just the last six months in Pierce County?
3:45- Why it was a good thing for our market to see a decrease in home appreciation
4:10- What’s currently available to buyers in Pierce County?
4:45- The two types of markets for home sellers right now
5:30- A final look at our absorption rate and what that means in this market

If you have any questions for me or would like to see the statistics for your specific neighborhood, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Which Improvements Bring the Best Return on Investment?

If you’re interested in adding value to your home before you sell, today’s message is for you.

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Not all improvements will bring as high a return as you might hope as you prepare to sell your home. When getting your property ready for the market, you need to be strategic in the upgrades and repairs you choose to invest in.

There are a few specific areas that will bring a high return on investment (or ROI).

To begin, make sure to spruce up your curb appeal. First impressions matter, which is why your home’s exterior is so critical to your success as a seller. However, don’t forget that less is more. Simple touches can go a long way in terms of adding value. The most important thing is that your yard is neat, tidy, and leads buyers to expect an equally inviting interior when they set foot indoors.

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Less is more.

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Also, make sure the color of your home’s exterior doesn’t hurt its overall value. Certain colors, like yellow, can decrease what buyers will pay for your home by thousands of dollars. Conversely, having a front door that’s painted the right shade can add thousands to your value. Researching and implementing current design trends can make a world of difference.

Moving on to your home’s interior, bathroom renovations bring some of the highest ROI of any project. Modest bathroom renovations will bring an average of $1.71 for every $1 spent. Making more extravagant renovations, though, is typically a poor choice. Over-improving your bathroom will generally cause you to lose money instead of gaining it. All in all, the key to upgrading your home before you sell is to strike a balance between “enough” and “too much.” Again, less is more.

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Why the Highest Offer Doesn’t Always Win

The highest offer doesn’t always win the house. To make your offer as strong as possible, there are six big mistakes you need to avoid. 

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As a buyer, it’s still possible to get your dream home without having to empty your wallet. To make your offer as strong as possible without breaking the bank, there are six mistakes you need to avoid:

1. Not being flexible with the seller’s timeline. If, for instance, their house is vacant and they’re sitting on a hefty mortgage, they probably want to sell as quickly as possible. In this case, how quickly you can accommodate them depends on how much you’ve worked with your lender to prepare the necessary documentation to make your offer.

It’s also possible they haven’t found their next home to move into and they want to know that they’ll have a post-closing grace period to find that next home before they accept any offers. In this situation, it might be advantageous to agree to allow them to stay in the home after closing and rent it back from you until they can move out.

2. Not having your paperwork squared away. If you’re not pre-approved before you make your offer, it won’t hold any weight with the seller, so make sure you get pre-approved. It doesn’t matter how good your offer is if you can’t guarantee your financing will process or not.

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If your offer is rejected once, don’t give up.

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3. Asking for too many concessions and/or contingencies. If the seller wants these kinds of things included in the deal, they’ll probably include them themselves.

4. Requesting too many things to be included with the property. If the seller specifically declares that a certain part of the home is excluded from the sale, I don’t recommend trying to include it.

5. Not expressing your love for the house. We all take pride in our homes, and sharing with the seller how much you appreciate their house and how much you look forward to taking care of it can make a big difference in whether your offer is accepted or not if you find yourself in a multiple-offer situation.

6. Giving up after your offer is rejected. If your offer is rejected once, don’t give up. A home sale is a process that involves some negotiation, so don’t be offended by a counteroffer you don’t like and possibly miss out on a great opportunity. Instead, keep the conversation going with the seller. 

If you’d like to know more about making your offer as strong as possible or you have any other real estate questions, don’t hesitate to reach out to me. I’d be happy to help you.

A Snapshot of Our Pierce County Real Estate Market

 The latest from our Pierce County market.

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Today I’m bringing you the latest numbers from our Pierce County Market.

Appreciation for homes in our area has gone up 9.2% year over year, and the median price is currently at $355,000—a mark that is even with where we were little more than a year ago.

From January to February of this year, the median price jumped by 7.58%.

New home sales reached a seven-month high in December, making it the largest total since May of this past year.

As far as mortgage rates are concerned, we’re currently at 4.37%, which constitutes a 12-month low—rates decreased to 4.33% in February of 2018.

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Don’t confuse homes that are on the market with homes that are in the market.

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Homes that are selling are doing so in 53 days on average, and homes that are struggling to sell are spending about 91 days on market. This is demonstrative of a tale of two markets, so don’t confuse homes that are on the market with homes that are in the market.

842 homes sold this past February. That’s a 12-month low for Pierce County, which can likely be ascribed to a lack of inventory for buyers to purchase from.

How does the current median list price compare to the median sold price? Right now, the median list price is a little shy of $480,000, while the median sold price is $355,000—a 26% disparity. These numbers bear out the fact that there’s a lot of overpricing happening in our market. If you’re selling your home and it’s been on the market for 53 days, in all likelihood, you’ve priced it too high.

Know that we’re here to be a resource for you. If you have any real estate-related questions or you’d like to know more about your neighborhood so you can make an informed decision for your own property, don’t hesitate to reach out to us. I hope to hear from you soon!

An Update on Where Our Real Estate Market Is in 2019

How did the 2018 housing market compare to 2017? Let’s find out.

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Now that we’re in the new year, it’s time to compare our year-end numbers for 2018 with those from 2017. Let’s see what changed.

3,935 homes were sold in 2017, while 3,407 were sold in 2018—a decrease of 13.5%. This is most likely because there wasn’t as much inventory. The amount was getting lower and lower, but we’re finally seeing it begin to correct itself. 

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Decreased inventory meant an increase in price.

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The decreased inventory meant an increase in price; the median sales price in 2017 was $315,000, which increased to $340,000 by the end of 2018. This is an 8% increase year over year. The sale-to-list price ratio was 100% for both years, meaning that all homes met their selling goals.

The median size of homes (at $340,000) is still three bedrooms, two-and-a-quarter bathrooms, and 1,900 square feet. The average number of days a home spent on the market was 21 days in 2017 and 23 days in 2018.

Overall, we’ve seen some great growth in our market as people move into the Pierce County area. If you have any questions, need more information, or would like to know more about your hyperlocal market, reach out to us. We look forward to helping you soon.