Good News And Bad News About Homes For Sale And Real Estate In Woodbridge
It's Official: The Buyer's Market Is Over, Finished, Kaput...
It's A Seller's Market Again...
For some of my Gentle Readers, this short post is good news, while other Gentle Readers will see it as not-so-good news, and the rest of you shall be horribly confused.
SELLING A HOME IN WOODBRIDGE AND NORTHERN VIRGINIA
If you own a home, and you wish to sell fast, for a market price, with the least hassle, you may dance the "Happy Dance" because we're back to a Seller's Market. Good news!
You can sell your home fast, and with the least hassle, IF you price your home in line with current sales... current home values.
Nostalgic home owners, who remember 2005, when homes like yours were selling for a zillion dollars, the bad news is that market values today are generally 40%-50% below the peak of the market in 2005.
So, take my friend, Sad Sam. Sam bought his home in 1992 for $185,000. In 2005, Sam's home could have sold for $780,000. In 2009, homes like Sam's, in the same subdivision, same floorplan, are selling for $430,000.
Sad Sam is sad because he looks at the dark cloud behind the silver lining, crying, "If I sell now, I'll be losing $350,000!! Woe is me." Sam is focusing on the difference in value between 2005 and 2009 by subtracting $430,000 from $780,000, and crying "Boo-Hoo" over the $350,000 change in value.
Happy Harry owns the house across the street from Sam. Harry is happy because he too bought his house for $185,000 in 1992. Harry gets happy when he compares the current market value of his home, $430,000 to the $185,000 price he paid in 1992, by subtracting $185,000 from $430,000, netting Harry a $245,000 gain, or "equity profit". Harry sees the silver lining surrounding the cloud.
BUYING A HOME IN 2009 IN WOODBRIDGE AND NORTHERN VIRGINIA
Marty Miser has been waiting for the market to "hit bottom" so he can pounce on a house, buy it at the "bottom of the market".
Marty Miser refused to accept a fundamental fact of market-timing: We find out when the market hit bottom a year or two after the fact, when statistics about sales values come into focus with the help of 20/20 hindsight.
Marty Miser, and guys like Marty, tend to suffer from a personality disorder called "all or nothing", meaning, when they miss the "bottom of the market", they throw in the towel, give up, and quit.
Moreover, Marty Miser cops a resentment, and declares that he will not buy now, even though prices are 40%-50% below the peak of the boom in 2005. What's he gonna do? He declares that he shall rent for ten more years while the market values slowly rise to the NEXT market peak, wait for the NEXT "bubble to burst" and hope to buy a home in ten years during the NEXT Buyers Market.
Meanwhile, Sensible Sally is happy to get a nice home for 40%-50% below 2005 prices. In fact, her "Dream Home" she could not afford in 2005 is now for sale at a price she can afford. Sally gets a lovely home at a good value.
So, Sellers, who will you be? Happy Harry or Sad Sam?
Buyers, who will you be? Sensible Sally or Marty Miser?
I've been through three booms and three market corrections.
My experience shows that Sensible Sally's and Happy Harry's always do well over time.
Sad Sam and Marty miser allow their ego and emotions to take stupid choices.
So who are you?
If you are Happy Harry or Sensible Sally, call me, I can help you.
If you are Marty Miser or Sad Sam, you are doomed to a miserable life. Don't bother me.
Opportunities Are Everywhere...We Can Help You Find Your Dream Home.
Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252 list your property for sale or to purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany, Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.
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