Issue 25
In the last few articles, we put forth a bold statement that basically indicated that with the rise in Middle Housing, condoized ADUs, and a myriad of new and efficient housing product, that we foresee buyer strategies changing over the next few years. Armed with knowledge of their monthly housing budget, they will be open to looking at an entire new "bucket" of housing options including:
- Condoized detached ADUs and cottages
- Condoized attached ADUs and multi-family units (2-6 units)
- Condos (traditional condos in a building)
- Townhomes
Whereas previously, a buyer might start with an assumption that they were looking for a townhouse or condo, they may be starting with their dollar amount and list of housing priorities, such as need for parking, HOA amenities (or a very limited HOA), maintenance needs, stair requirements, etc, and work backwards, considering EVERYTHING in that bucket.
Therefore, agents need to ready themselves by understanding how condoization works with ADU product, how to evaluate privacy in a condoized property, and look for those details in HOA and survey documents (and know when to consult with your managing broker or attorney).
This week, we are going to be looking at the details around location, what tomorrow's buyer may need to know before even viewing a property, and resources you as the agent will want in your toolbox to help.
Location, Location, Location
It used to be that location meant something geographic such as a neighborhood or a few blocks within that neighborhood. That strategy works well when one is talking about a detached house with a yard, driveway, garage, and lots of space. When the housing type changes to something more efficient and compact, possibly without a designated parking spot, little or no yard or storage, location becomes a stronger driving force in the property-buying process and for most people, that is going to start with transportation - primarily commuting.
There are cities throughout the world in which commuting to work without a car is a easy (even easier than WITH a car in many locations). Seattle is getting there. Currently 20% of Seattle households do not have a car. Compare this to Copenhagen, Denmark in which 60% of the population commutes to work on a bike. Copenhagen has been aggressively creating a bike-forward environment since the 1960s. At that same time, Washington State put a freeway through the middle of Downtown, trying to improve the flow of cars. 60 years later, Seattle is now pushing multi-modal transportation and may eventually get closer to where some European cities are today.
In the meantime however, commuting in our densest city - Seattle means time. Time in traffic, time to park, time waiting for the bus or transfering between bus, and train, time walking, etc. Time is a personally-held commodity that buyers will be using to evaluate properties - and you can help!
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EXAMPLE - a first-time homebuyer works in Ballard (working four 10s) and has a budget of $2,900 per month for their housing costs (mortgage, taxes, insurance, HOA dues if applicable, and parking). They need to commute to Ballard four times per week (eight separate commutes). They have a car, but parking around work is awful and they prefer multi-modal transportation. Let's also say that a 2-bedroom unit is needed due to kids - so it isn't just about the commute time, it also is about the commute to school time and proximity. It's less about whether the kitchen has been remodeled and more about transportation logistics.
As our cities get denser, you may find yourself in the role of not only real estate agent, but you will also be expected to have knowledge of:
- Bus routes, street cars, and frequency
- Light rail (if applicable in your area)
- Ferries (if applicable in your area)
- Bike routes
- And other local options
I bet you never thought that being an urban travel agent was on your resume!
But I do have a tool to suggest that can help you and your clients:
