Dear Buyers,
Welcome to the DC Metro Area housing market. It is exciting and more than a little nerve wracking. You have read all the newspaper reports, so you know that prices are soft, there is lots of inventory, and interest rates are fabulous. The affordability index is about as good as it has ever been. That may have been what brought you out into the market. You have been promised a deal by the Washington Post, and so a deal you must have, in order to feel confident that you are making the right decision. Then the economic news doesn't help either! Even though you know that in the long run buying a house will pay off, with so many layoffs and closures, those of you with relatively secure jobs feel that time is on your side until things turn around.
I have to say in all honesty that I understand your feelings and the fact of the matter is that we do no have crystal balls and we have never been down this road before (even those of us who have been in the business over 20 years).
However, deals in the DC metro area, particularly in DC itself, are not so easy to come by. The DC condo market actually increased over 2007 although all other sectors of the market in DC, MD, and VA declined.
Here are some stories of buyers. One finally decided in November that he was going to wait to buy because he is onvinced the prices are going to fall further and so far, he has certainly been right. Another buyer made an offer on a property in November and the seller countered but not low enough. The seller decided to wait and about 10 days ago guess what, the listing was lowered to the price we had offered. (Not even what they countered) However, since then the buyer has seen a home she likes better and is now waiting for the price to come down to what she wants to pay. (Since that is what happened with the last one)
Itis hard to insist that the prices are not going to come down further when it keeps happening, but these buyers still don't have a place to call home yet. Some buyers are okay with that and others start to get a little frustrated.
Another buyer client who refused to disclose their financial position UNTIL the seller made it a requirement - they also insisted on offering 10% under the asking price (High $700's); then, in the midst of the negotiations the seller told the listing agent to drop the price $25,000 (which is where the initial counter had come back) - the buyer was none-to-pleased about that! Well, after 5 days of back-and-forth the buyer decided to "wait through the weekend" - and was basically holding their ground. A second offer came in on Monday (clean with strong financials) and the buyer lost the property - the buyer cried.
In this very topsy turvy market, one of the most important services your agent can provide is education and patience. This is all about you - your education and your comfort level. You must know that your agent has your best interests at heart. If you don't believe that then you have the wrong agent. You need to redefine the relationship you have with that agent! Your agent should be prepared to advocate aggressively on your behalf.
Your agent should be prepared to bring you the facts, and share his or her knowledge with truthfulness, because in the long run, you are the one who has to decide when to buy and what to buy
You should have the following discussion with your agent:
What are your motivations in buying a home at the present time. Is it to provide an appropriate home for the family for years to come? Is it to shelter taxable income? Is it to get into housing for the first time? Is it to get into that perfect dream home of a lifetime? Can your agent tell you why this is the perfect time to meet those goals.
How is the DC market different than other markets? Ask your agent to share with you any press articles that distinguish the DC market as better than most.
When you identify a property, discuss with your agent why this property meets your goals.
Brainstorm with your agnet why this is exactly the kind of property you should be pursuing in this soft market.
Remember that downtimes don't last a lifetime and you don't want to miss that perfect housebuyer.
"It is a rare moment when an opportunity like this becomes available; it is even a rarer moment that you will be able to afford it!"
If you are a buyer in the DC area market = please give me a call so we can have this discussion face to face! I love working with buyers.
Comments(1)