- Selection, selection, selection.
There are over 18,000 homes on the market. Regardless of
the price range a buyer desires, there are plenty of houses from
which to choose. Just a few years ago the resale inventory
dropped below 1,000 units. A buyer was forced to make
compromises if they were going to locate the home of their
dreams. There is a great selection of attached homes, condos,
and townhouses. You can find large lots, small lots, and a lot
that will accommodate your boat or RV. There are lots of options
in this market.
- No Bidding Wars. In 2005 we had
one client that made an offer on ten homes. They lost the first
nine to the 'feeding frenzy' that existed. Other buyers bid the
properties up substantially from the original listing price.
There were escalation clauses where buyers authorized their
agents to outbid other offers by thousands of dollars. There is
no competitive bidding in this buyer's market.
- You can make an offer. A few years
ago when you made an offer, the only question was how high above
the list price could the buyer reach in hopes of being the best
offer on the table. Today the sell price list vs. price ration
is about 96%. A seller will not be insulted if you 'make them an
offer they can't refuse'.
- Patience is tolerated. In the hot
seller's market that existed everything was rushed. Find a house
before other buyers did. Hurry up and make the offer. Today a
buyer can take their time. Look at several homes and think about
your decision for a few hours.
- Due diligence is welcomed. In this
market a buyer is encouraged to obtain a home inspection,
termite inspection, and appraisal. In 2005 many buyers waived
these contingencies in order gain an advantage with multiple
offers.
- There are plenty of specs. In the
not too distant past buyer had to 'play games' if they wanted a
new home. There were lotteries and waiting lists in order to
obtain new construction. Some buyers slept in their cars in
order to get to the head of the lines. R.L. Brown estimates that
builders have thousands of specs ready for immediate occupancy.
- Repair requests are welcomed.
After a buyer completes a home inspection, they are allowed to
submit a repair request to the seller. In the past a seller
might insist the home was sold 'as is'. Many times, there were
back-up buyers waiting for a primary buyer to upset the seller
whose home was increasing in value almost daily.
- Few, if any investors. It is
estimated that one third of all sales in 2005 were to investors.
These non-owner occupied buyer caused the market to inflate and
affordability to decline. Mortgage fraud became commonplace.
It's a great time to buy without having to compete with hundreds
of prospective landlords.
- Location, location, location.
Today's buyers can find homes closer to work. In the past buyers
flocked to Haymarket and Culpepper in order to find affordable
homes. In this market, reasonably priced homes are within biking
or walking distance to schools, rapid transit lines, and
relatives.
- Real Financing is available. The
'wink, wink' zero down, no doc, adjustable, sub-prime loans are
gone. Fixed rates are back. FHA financing, first time homeowner
bond programs, special loans for teachers, and police officers
are back in business. It's a great time to buy real estate!
4090-B Lafayette
Center Dr.
Chantilly, VA 20151
Office: 703-652-5702
Fax: 703-263-2510
E-mail: info@markhastings.net
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