I can remember 2006 like it was yesterday.  It was the year the market here in DC was going totally wild, with prospective buyers willing to part with their first born child to get an offer accepted.

Back then, my clients would find a place they, and 30 other buyers, loved enough to make an offer.  And here are some of the things they had to do to "win" a bloody bidding war:

  • Full price wouldn't do it.  They would have to go in way over asking and top it off with an "escalator" clause.
  • They (and the other 30 buyers) would have to have Dream House pre-inspected and then go in with "as is" offers so the sellers would not have to make any repairs.
  • They would have to strike the financing and appraisal contingencies.

You got it.  NO WAY OUT!  And I would show up with the agents presenting the other 30 buyers' offers, and whoever was the most completely insane got the house.  The other 29 were so disappointed, and most went on to eventually buy something that was crazy overpriced.

Today, it's different.  Prices are down in many parts of the DC area, especially once you leave the popular neighborhoods in Northwest Washington.  Even in the more popular neighborhoods, bidding wars are the exception to the rule, and they don't even result in above asking price offers a lot of the time.  If you are looking in the suburbs of Maryland and Virginia, there are often real bargains to be had.

It's basically sane.  It's a far more balanced market.  But so many buyers are hesitant to jump in.

If you are on the fence, think about it for a minute. 

  • Prices are relatively low in DC and quite low in the suburbs.
  • Interest rates are ridiculously low
  • Every one of my buyers who bought during a down market, when everyone else was afraid to jump in, is ecstatic about their decision.
  • Your buying and bargaining position will be much better now than in the recent past.

So if you just suck it up and jump off of that proverbial fence, there could be a wonderful house waiting that you will actually be able to buy without making yourself crazy!

 If you are planning a move to or from the Washington, DC area, I can help!  I am licensed in the District of Columbia, Maryland and Virginia.  You may call, email or text me at: 

 Housepat@mac.com

 202-549-5167

 

 

 

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14 Comments on Buy High, Sell Low! No! That's Not How It Works!

OCT
24
2011
315,303 Points 5 Featured Posts Called Shot Master

Pat, you are right!  If someone has good credit and a downpayment ready...they should GO FOR IT!! :)
3:39pm • #1
762,151 Points 106 Featured Posts Outside Blog Called Shot Master

Our market in 2006 was similar. People were making offers on homes sight unseen. I have talked to many people that bought then and settled for something sell just to get a home. That wasn't the time to buy, this is.
3:42pm • #2
628,490 Points 1 Featured Post Outside Blog

Patricia-I remember those crazy days in real estate, in comparison this is an excellent time to jump into the market. 

 

Best
3:45pm • #3

Patricia, great post. If you take a look at Realtor.com's September 2011 real estate trend data, you'll see some interesting trends. In the Virginia suburbs of DC, for example, the median list price was $372,945, and rose on a month-over-month and year-over-year basis. The median age of inventory was also 75 days in September, much lower than the national median of 107 days.
3:53pm • #4

I agree that it's the ultimate buying market. Low prices, lots of inventory, and great interest rates! What more could someone wait for? The time to buy is now.
3:56pm • #5
1,519,007 Points 112 Featured Posts Localism Sponsor Outside Blog Called Shot Master

I remember selling our Centreville, VA townhouse during the peak and seeing buyers forego every imaginable contingency and pumping up the price.  Buyers shopping now really are getting the best deals without having to work without a net.
4:00pm • #6
683,194 Points 83 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Hi Pat~

I like the conept of BALANCE you point to in this post! I wonder what it is like...
4:06pm • #7
1,099,427 Points 94 Featured Posts Outside Blog Hit Router Attended Rain Camp Called Shot Master

Pat,

I remember those heady days and am quite glad they're over. Some sellers still think that they're giving money away if they don't get those prices.

Rich
4:06pm • #8
468,018 Points 66 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Pat, I remember those days no financing contingencies. Now buyers are not only putting in financing contingencies but full funding contingencies
9:27pm • #9
1,336,766 Points 128 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

So many bad decisions were made during that time. Just look at the homes that were purchased in 2006 and HAVE to be sold! (We are seeing the outcome of bypassed inspections)

I had a few sellers take my advice back then.  Here is what I told them..."If you are thinking about selling in the near future...do it now, put the money in the bank and rent for awhile."  A few took my advice and were they ever happy?!

Now is time to contact your qualified buyers and make some real sensible real estate decisions. It is time to jump in!

I think we are going to hear..."I coulda bought that house for minus X dollars  back in 2011."

Margaret
9:49pm • #10
1,346,153 Points 71 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I am starting to see multiple offers again down here in the Sunshine State...hope it is a trend!
10:08pm • #11
988,953 Points 49 Featured Posts Outside Blog Called Shot Master

Pat - Your bidding wars were crazy back then, WOW and here I thought ours were bad, not even close.
11:11pm • #12
OCT
25
2011
1,912,933 Points 386 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

I have a strong preference for working in a balanced market, or even a buyer's market.  I think we all have a few recent past clients who, if they called to say "Hey!  I just got dream job in Paris and you need to sell my place!"  I'm not sure I'd be thrilled to get the call.
10:36am • #13
1,150,590 Points 53 Featured Posts Outside Blog

Pat,

To avoid that, I think the best thing to do is hold onto a house, unless you really need to sell. I have a couple rentals that are a pain, but they cash flow nicely. And I do not want to sell now.
11:12am • #14

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Patricia Kennedy

Washington, DC

More about me…

Evers & Company Realtors

Address: 4400 Jenifer Street NW, Washington, DC , 20015

Office Phone: (202) 364-1700

Cell Phone: (202) 549-5167

Email Me

Pat Kennedy -- author of The Irreverent Guide to Real Estate -- gives you a look at life on the streets as a real estate broker in our nation's capital. And her blog is peppered with great advice combined with humor!


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