It's getting a bit harder for first time buyers to get a real deal on Seattle homes these days. If my personal anecdotes relate at all to the general real estate market in Seattle, there's a real floor being created in prices for entry-level homes. My first time buyer clients are finding that buying a home isn't as easy as making a low-ball offer and waiting for the transaction to close. In the last few weeks:

Buyer 1 tried to purchase 2 new construction condos in University District ($200k) and lost out on both to full price offers the same weekend. This developer doesn't need to negotiate, as sales are coming fast and all at the list price. This same buyer then purchased a new construction condo in Capitol Hill ($270k) at about an 8% discount from list price.

Buyer 2 made a nearly-full price offer on a house in Mt Baker ($250k), only to have another buyer pay full list price (after 4 months on the market) the same weekend.

Buyer 3 purchased a new construction condo in South Lake Union ($400k) at the list price with some financing concessions, as four other lofts in the building sold that same weekend, all at the full listing price.

Buyer 4 found 2 bank-owned condos in Edmonds and Lynnwood ($150k), was too busy with work to write an offer that day, and they were both gone the next day to full-price buyers. Currently has a full-price offer out on a bank-owned condo.

Buyer 5 made an offer of 2% below list price on a small home in Tukwila ($250k), while a competing offer was written above the list price. This home was on the market for 4 months, with no previous price reductions. Some buyers are getting the bidding war mentality.

Buyer 6 just got a contract signed around on a bank-owned home in SeaTac with a nice lake view ($250k). It took a month of negotiation, but this buyer is getting a 10% discount off the list price when we first made contact with the bank.

There are still some deals to be had, so there's no reason to be frenzied about buying a home. First time buyers should get serious, though, if they're trying to meet the November 30 deadline for the tax credit. Short sales will likely not happen in that time frame. Bank-owned homes are still possible, but they need to be under contract in the next few weeks. There will be a surge of home sales in the next month if the tax credit isn't extended, so get ready to make a strong offer and get a transaction moving.