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Low Rates, Plenty of Buyers and Low Inventory
Make it a Perfect Time to Sell
Most Markets in Northern Virginia are now
SELLER'S MARKETS!
In January of 2009, for every 5 homes on the market, 1 was under contract. In many areas of Northern Virginia, there are now 3-4 homes under contract for every 5 on the market. Homes that are priced correctly will have multiple contracts within one week. Many home sellers are pleasantly surprised with their pricing.
The sellers market extends beyond the lower priced homes. In some markets there is almost no inventory of luxury homes allowing sellers to command top dollar. All markets differ, but most markets, regardless of location and price, find themselves in a seller's market.
Tips for our Sellers:
Foreclosures and short sales are not your competition: We do not take their sales into account when pricing your home. Many buyers need to find a quality home and a seller who can make a decision and deliver the home within 60 days. Foreclosure and short sale buyers eventually get tired of losing contracts.
Know your buyers: Buyers are out there and they are paying top dollar for nice homes. You need to know where that price point is. Do not get greedy.
Moving up, or down: The ability for sellers to get top dollar for their home, creates a great opportunity for them to make a move on their next home and lock in low, long term rates.
The PROBLEM: The question is not what will your home sell for, it's what will it appraise for. New rules have made getting the appraisal job #1. I had 5 contracts on a home within a week, and then had to struggle with the appraiser to get our price.
Selling commissions With today's technology, no one has to pay more than 4.5% to sell their homes.
Tips for our Short Sellers:
Obama backs short sales: On May 14 the Obama administration urged banks to do more short sales and less foreclosures. This has led to new policies and procedures and turned short sales into a much more expedient process.
Pricing: Banks will generally accept 90% of a homes fair market value. Buyers are bidding most short sales to 95%-100% of value, so approval based on price is not a problem. Selection of short sale buyers is NOT BASED ON PRICE, but on lack of contingencies and security that the buyer will be there when the deal is approved. Selecting the right buyer is the critical issue.
Defining hardship: Banks require that the seller demonstrate a hardship and must sell. For some banks, owing $100,000 more than the home is worth is hardship enough. Samson Realty maintains a matrix of bank policies and can help in this process.
Timing: Most short sales go on the market on Thursday, held open on Sunday, collect contracts on Monday and ratify on Tuesday. Approval can now be obtained in less than 40 days, with settlement in 30.
Reentering the home market: Short sellers will take a hit on their credit, and at this time, will be unable to reenter the buying market for 12-18 months. There will be a huge number of rebound buyers that will be reentering the market in 2010-2013
Interest Rates:
Higher rates will slow refinancing, but not buyers: Rates have ticked up over the last two weeks. This was caused by all of the refinance bubble of homeowners taking advantage of lower rates. Rates still hover in the low 5% range and has not deterred buyers. The Fed is working to drop rates, but this is a more than acceptable range for buyers. 5 Year ARMS are available for 4% with 2 points. Rates are subject to change.
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