It seems it is time to adopt strategies of the past.
I have Buyers who have now lost 2 great properties in a week; both times due to Multiple Offers. (4 Each Time).
This is happening all over the DC Metro area. Now don’t for a second think that every property is seeing multiple offers. That is just silly. But many of the good ones are moving fast.
One very hot area I am working in is Ashburn and Sterling VA. It seems every townhome is going under contract within 7 days. I have shown 12 properties there this month – all but 1 is under contract – most with multiple offers.
So why is this happening and will it continue?
Well there are a couple of factors.
1) The 1st Time Home Buyer Tax Credit. It expires at the end of April. If you don’t have a contract by April 30th; you don’t qualify for the $8,000 tax credit.
2) In this part of the Metro area; prices took a huge tumble. They now seem to have stabilized and are moving up – slowly.
3) Continue? It will probably slow down; but prices ARE still very good. Interest rate ARE still very low; and many buyers are NOT 1st Time Buyers; so the tax credit doesn’t matter anyway.
So what do you do if you find yourself in the “HOT MARKET”?
1) Don’t Panic. You will find a home. There are many out there; with spring now arriving; more listings hit the market daily.
2) DO NOT get crazy and offer too much money. Know your budget and stick with it. Do not let yourself go nuts and spend more than you originally planned.
3) Stop looking at homes listed at the TOP of your price range. Like it or not; homes are going for a bit OVER list price. They still have to appraise; and prices are slowly rising; but if you bit on a home at the top of your limit – you will be disappointed.
4) Make sure your offer is clean as possible. You can’t ask for crazy things like rent-backs, home sale contingencies and 5% off the price. YES – you WILL have a Home Inspection and YES – you WILL have an appraisal. Much more and it will get kicked back to you.
5) Be serious and put up the Earnest Money. Your deposit is a show that you are serious and don’t want to screw around. In our market – 1-3% is the norm. Put down 3-5%. If the sellers know you have the cash they will take you serious.
6) Have a good agent whom has a good reputation. If the listing agent has 3 or 4 offers and they know agent #2 is a pain in the butt who never co-operates; guess who’s offer will never get picked?
Here are just a few things to do. For more…. well for that you have to hire me.
Happy Home Buying !
Contact James Downing of the Downing Real Estate Group, if you are selling, buying or have questions!
Office: 202-362-5800 Cell: 703.244.3971
Licensed in Washington DC, Virginia & Maryland.
Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW Suite 100 * Washington DC 20016