The housing market around the country is crazy hot.
It reminds me of 2005 -2006 when as a Northern Virginia Realtor we use to run around like a manic, write offers on the hood of the car trunk, and fax or hand-deliver the offers. Some of the agents back then still did not have a cell phone so waiting by our office or home phone until late-late night to hear a decision. And again back in the morning at 7 AM off on the road to see the home that just popped on the market. While some of my other buyers were camping in front of the builders' office for the home site release.
If you have lived through the 2005-2006 housing market 2020 housing market is no different. But we do have the luxury of technology.
Should you give up hope as a home buyer?
Here are a few tips as a seasoned Realtor in Fairfax or Loudoun County of the Northern Virginia area:
1. Ugly Duckling: Everyone wants a turn-key condition home. Let's be realistic and look at homes that don't have all the bells and whistles. Home is a long term commitment. Slowing and graduating get updates done in the home.
2. Interest rate will GO up: We don't know what the 2021 housing market will be like but Fed has already expressed they don't have to intend to raise the bank rates. That could mean the interest rates will remain low for a decent amount of time.
3. SAVE UP: Yes, it is cheaper to buy than rent at the moment. However, if you are not very financially strong in this sellers' housing market you winning a bid on a home has a minimum chance. Save up for a larger downpayment. Work with your lender and get fully qualified rather than just a simple pre-approval letter from him/her.
4. Expand your Home Search: If you have and will continue to have the flexibility to work from home look at areas away from the focus area. For example, if you are considering the HOT Ashburn Virginia market look into Western Loudoun for opportunities.
5. Learn from the Missed Opportunities: It amuse me when I received offers on my listings with contingencies. In a market where buyers have absolutely ZERO say having any contingencies decreases your chances of winning. If you have lost a home ask the listing agent what were the weakness of your contract. And be prepared next time.
Bottom Line: Constantly check online for a home to be on the market is exhausting. Losing a bid on a home is very tough and frustrating. BUT If you want to be a homeowner in this housing market keep your emotions out of the purchase decision. MOVE ON and keep HOUSE HUNTING!