The Northern Virginia marketplace went from being new construction heavy in the mid-2000's, to being Foreclosure and Short Sale heavy later in the decade.
To talk about a Northern Virginia "Foreclosure" is actually a slang term. What is actually known as a Northern Virginia Foreclosure is actually a Northern Virgina Bank Owned Home or a Northern Virginia REO. (REO stands for Real Estate Owned.)
Northern Virginia Foreclosures are simply properties that have been repossessed by the mortgage company. The Seller in a Northern Virginia Foreclosure is the bank that repossessed the property. The person with the authority to accept and sign a Northern Virginia Regional Sales Contract on behalf of the bank is either the Asset Manager (a third party paid to oversee the sale of REOs) or the bank's Upper Management.
If you are a Buyer looking to purchase a Northern Virginia Foreclosure, getting a Ratified Contract from the bank will take a bit longer than dealing with a regular home owner. Also expect to purchase your Northern Virginia Foreclosure in AS-IS condition. What does that mean?
The bank will not make any warranty about the condition of the property and will usually not make any repairs to the property before settlement. That doesn't mean that Northern Virginia Buyers shouldn't have a Home Inspection Contingency. Every buyer should have the opportunity to have a property inspected to see if there are issues that will be too costly to repair, making the purchase of the Northern Virginia Foreclosure no longer feasible.
The Northern Virginia Foreclosure Market is a competitive one. If you are purchasing a Northern Virginia Foreclosure, be prapared to make your highest and best offer. Banks do not negotiate in multiple offer situations, so always put your best foot forward when writing on a Northern Virginia Foreclosure.
Chris Ann Cleland, Associate Broker- Licensed in Virginia, GRI, SFR, Northern Virginia Short Sale Specialist. Affiliated with Long & Foster, 7526 Limestone Drive, Gainesville, VA 20155. To contact Chris Ann, call 703-402-0037 or email chrisann@LNF.com. Or you can visit her website: www.nvarealestate.net.
Header photos taken by Chris Ann Cleland.
The opinions expressed in this post are those of Chris Ann Cleland, not those of Long & Foster REALTORS®.