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Buying a home in Northern Virginia right now? Stay competitive. It is not a buyers' market.

By
Real Estate Agent with Compass

The Northern Virginia real estate market for detached homes and fee simple townhouses in Northern Virginia is hotter than it's been in years.  Inventory levels are LOW!     If you are just pulling comparable sales figures, based on say 60-90 days worth of closings, you would not get the whole picture.    That's because houses that have closed in February and March, may have been put under contract in December, when the market was much cooler.  So if you are looking at sales history and thinking that most houses are selling for under list price - think again.  You need an experienced Northern Virginia Real Estate Agent who knows what is really happening in the marketplace right now.  Because it has changed drastically since winter.  So turn off CNN, and realize that the Northern Virginia real estate market place is different than the rest of the country.

 

Well priced, presented and marketed properties, especially in the under $750,000 price range sought after neighborhoods are  getting multiple contracts within 2-7 days on the market in most close-in Northern Virginia communities such as Arlington, Falls Church, Vienna and Alexandria.  When multiple offers are presented in this market, it usually means the seller will get their list price or a little bit more, with no subsidy.   Standard contingencies are still normally left in place, but if you've found your dream house and don't want to lose it, consider the following list of terms that can make you stand out in a multiple offer situation.    

 

  • Solid Earnest Money Deposit - higher than 1-2% shows you are really serious about getting the house and less likely to walk away.
  • Slightly over asking price - If the property is worth it to you, and the other homes you've seen don't compare, throw in a bit more over asking price to give the seller an offer they can't refuse.
  • Put more money down - If you have been saving up for a house, put it down on the house.   The more money you put down, the more financially solid you will appear to the seller and the less likely you will be to get rejected for financing.
  • Get a great agent (goes without saying) but your agent should advise you of these things and a little bit more - like calling the listing agent and find out what other terms are important to the seller.    Some sellers may want a 30 day close, others may want to stay longer.  Your agent should do your homework and find out what will get you the house.  Then take your agent's advice!
  • Waive contingencies - This is a touchy subject and only the most savvy buyers should do this.  There are a few standard contingencies:  Inspection, Radon, Financing and Appraisal.  Ask your agent for honest advice on the pros-cons of waiving any of these.    For example, waiving inspection contingency does not equate to buying the house "as-is" and the seller still has to make sure that plumbing, electrical and appliances are in normal working order.  
  • Shorten contingency times - Sellers want a done deal.  So get your inspeciton done in 5 days.   Get your financing done in 14-21 days.  Good lenders can make this happen.
  • Use your Realtor's recommened local lender  - They are accountable.  They want to get more referrals from your agent and will do a better job than the central office in Texas.
These are just a few of the things you can do to win in a multiple offer situation, but contact me for a customized approach to each offer.  Yes, it might take several before you get the house, and you need an agent who can give you the best advice for each situation.   All of the above is pertaining to hot, new, correctly-priced listings.  Not stale over priced listings in bad condition that have been growing moss since last October.  Those are a totally different ballgame, and yes there are still some of those  less desirable properties around...but not many.


 

 

 

Comments (6)

Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Great pointers for getting the home of your dreams in a compettive offer situation.  Of course, a CMA would reveal if an asking price is too high.  I never assume it's on the money.  Sometimes they are WAY too low and other times the exact opposite.

Apr 12, 2011 04:30 AM
Coral Gundlach
Compass - Arlington, VA
Real Lives. Not Just Real Estate.

Chris Ann - Yes normally, but my point is that the CMA does not always tell you enough right now.  Yes, you need to find good comps, but the pending sales are the ones that are telling us what the market is doing right now, and right now, compared to even 90-120 days ago, is quite different.  Not major upward pressure on prices, but if you are looking for trends on how much to offer off list price, or how much in subsidies are being given, a traditional CMA won't tell you.   Now, let me caveat that this is all on new listings.  Anything over 30 days and you know it's a bit over priced.

Apr 12, 2011 11:07 AM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Very solid post Coral!  Very good advice.  I think this should go further, so it is suggested!

Apr 12, 2011 02:19 PM
Coral Gundlach
Compass - Arlington, VA
Real Lives. Not Just Real Estate.

Thanks Jay - it's nuts out there and not at all like the national news!  I don't think people really realize it.

Apr 12, 2011 02:23 PM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

I think what's happening is people realize interest rates will be going up soon and are trying to get into the game before that happens.

Apr 12, 2011 10:47 PM
Cara Marcelle Mancuso
Golden Girls with SW Desert Homes - Tucson, AZ
Call a Marana neighbor, I'm THERE!

It is so interesting to read what is going on around the country through Active Rain posts.  Very well presented information here, Coral - thanks!

Apr 13, 2011 04:01 PM