The past few months, I have been telling my buyers, yes you might need to make an offer equal to the sales price or possible higher if we find ourselves in a multiple offer position. This sounds a little skeptical to most new buyers coming on the market. after all, until recently, the media and everyone else has been painting such a bleak picture of our home sale market.
Time and time again, we have witnessed that the market changes like the weather. It might be sunny in Florida, but snowing in Virginia. Well folks, it is sunny in Northern Virginia and prices have stabilized in SOME PRICE RANGES. By the time the media gets in tune with the picture, you most likely have lost several homes because your price was not high enough. Loudoun County homes are selling!!
Do you believe Chicken Little? Are prices still falling or is the end near??
Are you seeing a change in your area? We certainly are in Northern Virginia and in Loudoun County. Sellers are seeing offers in 0-3 days in some cases. My recent seller in Purcellville went under contract the day we went on the market. One of my buyers made an offer on a home in Leesburg the very day it went on the market.
Time is of the essence in most situations. Smart buyers, who have been looking and who have faced the loosing homes to other purchasers making higher offers, understand INVENTORY IS DOWN compared to a few months ago.
The sky isn't falling- prices are no longer heading down, but have stabilized. Buyers are tired of dealing with REOs and Short Sales and are now aware of the differences. They don't want to buy "as is" unless they cannot find a home in their price range. Investors are in the market bring cash which makes the FHA loans less appealing. Regular inventory or resales is down, and the buers who have been renting must make decisions on their lease agreements. They no longer wait for new construction. Many of these consumers are First-Time Home Buyers who want to take advantage of the tax incentives, especially since they will be able to use the $8000 now and will not need to wait until next years tax return.
Take for example, a a townhouse I listed in The Lakes at Red Rock in April.
My clients were smart and priced their home just a little below others in the area- not as low as the foreclosed or short sales like the one next door. Since they had one of the largest end-units, and one which was in fantastic condition, they had Realtors and clients asking to see the property immediately. We even had two agents ask to see their home at 8:00 and 9:00pm. Yes, I instructed my clients to accommodate them. With a little ho humming they left their home during American Idol to take a drive around the block so an agent could show the home.
Guess what, we received offers, one with an escalation clause. We also got a full price offer. Reality is, buyers are sick of the bidding wars with foreclosures, the wait, the frustration of short sales. They now are making good offers on well, priced properties.
My job as the market specialist is to provide my clients with the most updated information and knowledge of the market conditions. Unfortunately, it is a hard pill to swallow- they might have missed those bottom prices and will now need to pay a price more in line with the sales prices.
My listing in Purcellville want under contract the day it went in the MLS.
My last buyer made an offer on a great Little TH in Countryside. It had been renovated and showed beautifully. Priced at $199,900 this was a fair price, maybe a little high since the last one closed around $180,000 a few months ago. That one was an end-unit; therefore it should have a bit more value than an interior. I explained to my buyer that he will most likely be in a multiple offer position so he should consider making a fairly strong offer. I knew this property would not remain active for long.
You got it, by Monday, there were a total of three offers, ours was the lowest. I had called the listing agent who explained that the others were stronger, one did not ask for seller subsidy. Most likely this is the one that got ratified. If my client would have made an offer close to the asking price, and did not ask for closing cost assistance, he would be soon the proud owner of his first home. This seller took the advise of their Realtor and priced the property where the recent comps have sold. If my buyers would have taken my advise and made an offer that was more in line with the market prices or offer just a tad higher than the asking price, we would be heading toward settlement. My client would not be struggling to find another well priced property in a great location, and would not need to worry about his lease ending, or having missed the market.
None of us have a crystal ball. But what a seller and buyer need to understand is that we are Realtors, specialist, who watch the local market and can give the buyers and sellers the best advise possible. The consumer must choose to work with people they trust. You trust your doctors, your dentist, your tax consultant, your pet's vet. It is vital you search and find a Realtor who works in your best interest to meet your needs and you trust in them.
Please feel free to contact me for any information. I will be happy to give you the most up-to-date market conditions and comparable property analysis.
The majority of real estate agents do not sell Real Estate, especially the good ones! Hopefully, anyone who knows me knows that my philosophy is one which is ablsolutely founded in the Golden Rule, "do unto others as you would have them do unto you." I treat my clients, prospects, and other real estate agents with respect and dignity.
Selling with Soul is one way Jennifer Allen describes how good agents can thrive in any market. It is important to listen to sellers and buyers. You meet their needs, not your needs. You help sellers price their homes right and thoroughly explain the market here and now, not the one they would like to have. You help them through any difficult obstacle they might encounter..
I am never going to be the agent who simply puts a For Sale Sign on a property and waits for something to happen. Nor will I be a Tour-Guide/Taxi Driver for Buyers who are just out looking and not committed to buying. Nope, I am here for the long run. I am here for my clients not just for one sell or one purchase, but for all their real estate and home needs. I hope they call me to ask questions about home improvements, contractors, advise on decorating ideas, home sales, and other agents in the country. I will be happy to refer them to other experts or to other agents in areas I do not serve. I am here always and only a text or phone call away. That's the way I do business!
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