Does Your Home’s Web and Curb Appeal Get an A+? It had better.

There are many pieces to the puzzle when selling your home in today’s market. Two of them are web appeal and curb appeal. Both are extremely important and should be a main focus when selling your home. If either are not done well, you may turn away potential buyers and/or get a lower priced offer than you had hoped for.

Web Appeal

If your home’s web appeal is not A+, your home will fall into the “possibilities” and “discarded” folders of buyers’ searches. If your home stands out from the crowd and makes buyers say, “That looks nice!”, then your home goes into the “favorites” or “must see” folders.

Speaking from experience along with countless studies done on the topic, if your home is not in the top 3 to 5 of a buyers’ “favorites” folder, the buyer will most likely not want to see your home in person. And you can’t sell a home to a buyer who doesn’t come to see the home in person.

Curb Appeal

Once a buyer drives past your home or arrives to see it in person, your curb appeal is your home’s first impression to the buyer. The first impression can attract or deter the buyer within a matter of seconds. If your curb appeal is lower than an A+, someone driving past your home may say, “Bleh. The other house around the corner looks better”.

And someone coming to see the house in person will have a less than positive outlook on the entire property if the curb appeal isn’t excellent. You may either deter a potential buyer from seeing (and buying) the house or you may lose money because anything negative equals less money that a buyer will offer.

If you have your home on the market or about to put your home on the market, what grade would your home get for web appeal and curb appeal? If it’s not an A+, there’s something wrong. No, getting an A+ in web appeal and curb appeal is not like acing a master’s level class. And it can be done by even the busiest of sellers and listing agents.

So how do you get an A+ in web appeal and curb appeal? I’m going to go into detail about web appeal and curb appeal each in a separate blog post. The blog posts will be coming out over the next 10 days so grab the RSS feed, add this blog to your Google home page/reader/Google+ or other service you are using or just check back.

Regardless of how you access the posts, make sure you read them. Though the posts are free for everyone to read, what you get out of reading them may be the difference in whether you sell your home or not and/or may make you thousands of extra dollars when selling your home.

Free Capital Home Show Tickets!

Want to go to the Capital Home Show this week? Is money tight? Don’t worry…I gotcha covered! I have tickets to the Capital Home Show which I am giving away for free to clients and LoudounScene.com and LoudounForeclosures.com readers.

“Nothing in life is free!”, you say? You’re right. Here’s what I ask in return…

1) I have a limited supply of tickets and they’re first-come, first-serve so if I don’t have any more left when you contact me, please don’t be angry with me

2) When contacting me, you have to give me your real name, home address, working phone number and actual email and have to be OK with hearing from me once in a while regarding what’s going on with the local real estate market

If you’re still interested, click here to contact me for your free Capital Home Show tickets. And don’t forget to put in your home address so I can either mail them to you or drop them off at your front door (I will drop them off to you as long as you live in Northern VA and not somewhere like Richmond).

Homes Values vs. Purchasing Power

Home buyers seem to mainly focus on price. Yes, price (aka home values) is important. But purchasing power (derived from interest rates) is just as, if not more important than homes values. In fact, purchasing power has an effect on home values. And many (including me) argue that purchasing power is the most important part of not just the home buying decision process, but real estate in general.

If home values and purchasing power were your birthday cake, home values would be the cake part and purchasing power would be the frosting/icing. Personally, the frosting/icing is my favorite and most important part the cake – similar to how purchasing power should be an extremely important part of the equation for all home buyers and those looking to sell and “move up”.

Let’s look at a real life example of purchasing power and how it effects you…

Let’s say you are looking to spend no more than $1500 on your monthly mortgage payment (principal and interest only).

• At today’s average rate of 4.25 percent, you can get a loan up to $304,000
• 10 years ago, rates were at 7 percent which means you could get a loan up to $225,000
• 20 years ago, rates were at 9 percent which means you could get a loan up to $186,000

Quite the difference, isn’t it?!

If words don’t really do it for you, here’s a chart comparing home values vs. purchasing power since 1991 (courtesy of Dan Green, The Mortgage Reports)…

 

 

And don’t forget about how much of an effect interest rates have on your principal loan balance and equity…

The higher the interest rate, the more of your monthly payment goes toward interest and the less of a dent you make in your principal loan balance you owe. A higher interest rate equates to you building less equity in your house each time you make a payment than you would if you had a lower interest rate.

(Even if you’re not a frosting/icing person, I hope you’re starting to see how it’s not just about the cake)

BTW…No, I’m not trying to get you to buy a house because,”Now is a great time to buy!” (courtesy of you-know-who). I’m just saying that you need to take purchasing power into consideration when deciding whether buying a home or “moving up” is right for you or whether you should just continue renting or stay where you are.

Local New Home Sales Trump Rest of Nation

There’s the national new homes sales market. Then there’s the local new homes sales market. And they’re quite different from each other. The Washington, DC metro/Northern Virginia new homes sales market is ahead of the curve and doing much better than the rest of the nation.

There have been many articles and media coverage of how new home sales have slowed down. In some areas, new home sales have “plummeted” and “almost completely dried up”. Builder Magazine just ran an article, “New Home Sales Decline, Prompting Predictions of Worst Year on Record”, which paints a very gloomy picture of the new home market.

But that’s the national market. What about the local market here in the Washington, DC metro/Northern Virginia area?

Builders with developments/communities in this area saw the worst of the local new home sales market 3 to 5 years ago. Things started slowly turning around about 3 years ago. Then, as of about 18 months ago, someone lit a match under the new home sales market and the market took off.

For example, in speaking with several folks who are in the construction business, both builder employees and subcontractors, work finally began flowing about anywhere from 12 to 18 months ago. Rather than looking for side jobs to make ends meet, they’re working full time building homes across the DC metro/Northern VA area.

Another example is builder sales centers. Instead of a lot of green dots signalling open lots and sales reps throwing incentives at buyers as if they were confetti, there are red dots all over the site maps and incentives are few and far between.

And the attitude of builder sales reps is quite different… A look of despair was hard to hide a few years ago while smiles and positive attitudes are the norm nowadays.

The most impressive example is the actual number of new homes being sold and the success of communities and developments throughout the area. At the top of the list is Brambleton (Ashburn, Loudoun County, VA)…

In 2010, Brambleton set a record for the most new homes sold in its’ 10 year history. On top of that…Brambleton has sold more homes January through July 2011 than it did January through July 2010.

The thing that makes that statistic even more impressive is that Brambleton is made up of not just one builder, but 7 builders. And they all build different products and appeal to different home buyer personalities, incomes and demographics.

Why is this information important to consumers? Here are a just a few of the reasons…

1. If you are only reading national headlines, you may get a rude awakening when you walk into a new home sales center and try to negotiate 10% off the base price, get another $50K in incentives and put down a deposit on that awesome lot that was available last week.
2. You may not have believed your Buyer’s Agent when they told you something similar last week or even 18 months ago, but here’s the thing…they were telling you the truth.
3. If you’re a seller, you need to realize that you don’t have just your neighbors’ homes to compete with. You also have nearby home builders to compete with. Buyers are not just looking at existing homes – they’re also looking very closely at what home builders have to offer. And what they have to offer is often very enticing.
4. Builders know that they have the market on their side so you have to be even more careful when working and negotiating with a builder. You should have a Buyer’s Agent well versed in new construction on your side. Remember, a real estate agent’s/broker’s commission is a already written into the sales price. And no, you don’t get that commission refunded to you if you don’t have an agent/broker. So why would you not hire an agent/broker, pay the commission anyway and pad the builder’s pockets with even more profits?

If you have specific questions about the local new homes sales market, new home communities, builders or the new home purchase process in general, email or call me any time.

 

Can You Handle The Truth?

Most, if not all people say they want truth and honesty from others whether it be personally or in business. But not all people can actually handle the truth. This is especially true when it comes to their home because it’s often a perceived reflection of themselves.

Let me share a story with you illustrating my point…

Chapter One – Wanting Truth And Honesty

Several weeks ago, I was contacted by someone who had their home on the market. They were not very happy with their listing agent/broker and were thinking about switching. They contacted me after I was recommended to them by a past client of mine.

Over the course of two weeks, we exchanged numerous emails and phone calls and we had two lengthy face-to-face meetings at their home. I gave them an honest assessment of their situation which included, per their request, an assessment of how their current agent was doing from a selling/marketing standpoint.

I told them that their current listing agent was doing all the right things and their home had excellent exposure. When asked if I would do anything differently from a marketing standpoint, I said that I would do all of the things that their current agent was doing as well as a few things they were not which is what sets me apart from most other agents in the area (I give credit and take credit equally). I did not bash or disparage the other agent nor did I answer any questions that would cross any lines of legality or ethics. In fact, I gave the agent all of the credit they deserved, which was a lot.

Then they told me that they “just don’t feel right about the agent” and that there is something that “bothers” them. I told them that how they click with one agent versus another is the same way people click (or don’t click) with other people in general – you either do or you don’t. And that was not for me to discuss nor steer them one way or another. That’s something they had to decide amongst themselves on their own.

During and after they talked things over, they sent emails saying things like,

• “It was so great meeting you the other day and I thank you for my education lesson. You taught me a great deal!”
• “I will be in touch very soon- and thanks for being a guy full of integrity. I completely appreciate that.”
• “If this current offer goes no where – we will be KNOCKING on your door!!!!! You rock!”

After the offer they received did not work out, they told me they wanted to switch to me and sent me this,

• “We like the way you think. We can get the necessary doc you need to proceed with us and get to it when you get back [from vacation].”

At this point, things looked great!  But then…

Chapter Two – Not Really Wanting Nor Being Able To Handle The Truth

Their property is very unique and there was only one other property on the market that truly competed with theirs – same town, very similar price, similar size, etc. Well, that property went under contract while theirs was still active.

During our discussions about the situation, I said, “I wonder if the buyers that came through the other day are the ones that bought the property on XXXXXXXX. I say that because it would make sense for them to look at and consider that property along with yours.”

I then followed that up with facts – the property had a larger lot, more privacy due to not having a neighbor directly behind them nor having to share a driveway with another property, slightly more square footage, closer to a shopping center/amenities, etc.

Then they sent me this,

• “Actually, it would not, in our opinions! We have decided that it would be in our best interests to remain with [our current listing agent[ as [they] know the value of extremely well built homes in this area! You should be wary about criticizing the properties of potential clients in the future. Just a suggestion!”

The last sentence is what I mean when I ask you, “Can you handle the truth?” The irony is that truth and honesty is what they admired the most about me in the beginning yet, they used that against me when it didn’t agree with their personal opinion even though it was true and was exactly what they needed to hear.

In order to get the listing and make well over $10K in commission, I could have just agreed with them and told them that their home was the greatest thing since sliced bread because that’s what they obviously wanted to hear. But lying or blowing smoke to get a client is something that I will never do. Doing that is detrimental to you and will hurt your chances of selling your home.

But more importantly, it’s not what I’m about.

What I am about is honesty and the truth. I would rather be honest and truthful and waste my valuable time and money (as is the case in this situation) than lie to make thousands of dollars. Despite incidents like this, I will not ever change that philosophy.

Chapter Three – Can You Handle The Truth?

If these folks were you, would Chapter Two be written differently? Would you have taken my constructive criticism and the facts and applied them in a positive way? Or would you have also not wanted to hear the truth?

If you can handle the truth, then we will get along just fine and I would love to hear from you. If you can’t, I may not be the right agent for you.

State of the Loudoun County Housing Market

Wondering what the current state of the Loudoun County housing market is and where it’s trending? Here’s a detailed breakdown…

Loudoun County Home Buyer Activity Up

As you can see in the graph below, the average number of homes that go under contract each month in Loudoun County has been around 400 for the last half of 2010. But, starting January 2011, the number of homes going under contract increased dramatically and has been averaging just below 600 per month for the past 4 months. This means that buyers are out in greater force and actively buying properties – almost 50 percent more this year than they were the last half of 2010.

Loudoun County Housing Inventory Up…Down…Up

The number of active listings (homes for sale) in Loudoun County makes me think of the Grizzly in King’s Dominion. After hitting 1742 in September 2010, the number of active listings dropped quickly to a mere 1200-something in December, January and February (that’s a ridiculously low amount). But then it climbed quickly and is back up to 1696 as of June 2011. The increase is a trend that points away from a seller’s market, but don’t be fooled…1700 is still considered low when it comes to the total number of homes for sale in all of Loudoun County.

Loudoun County Median Sales Price Up

While the median home price in Loudoun County took another dip in the last half of 2010, it’s been on the rise in 2011. After going down in the last half of 2010 and hitting a low of $317,500 in January 2011, the median sales price hit $410,000 in June 2011. That’s almost a $100K/32% increase!

Loudoun County Average Days On Market Down

After hitting an average of only 49 days, the average days on market in Loudoun County went up to 86 (which is still not too shabby) in February 2011. Since then, the average days on market has dropped back down to 60. That’s only 2 months and is an important technical indicator that points to a seller’s market (though we need to keep an eye on the increase in active listings which may soon start to put upward pressure on the average days on market).

These statistics reinforce what my clients, myself and other active agents have been seeing on the ground…

• More buyers and investors are out buying a home or investment property this year than last year
• The extremely low interest rates have made a positive impact on the market
• Inventory is down so finding the right home for a buyer takes longer now than it did last year (patience is a virtue)
• Sellers that price, market and present their homes correctly are getting offers sooner than they would have last year
• Sellers have more negotiating power this year than last year (while buyers have less)
• Prices are higher today than they were last year (supply vs demand)

If you’re thinking about buying or selling a home in Loudoun County or would like to know what the market is like in your specific community, click here to contact me – I would happy to provide you with a free hyper-local market analysis and CMA.

Reason #55 Why Using the Right Lender is So Important

There are many reasons why using the right lender/loan officer is important. Let me rephrase that…VERY IMPORTANT! And here is reason #55…

This comes from Allison, a home buyer in Fairfax who posted the following questions on Trulia Q&A (note: I’m not her buyer’s agent nor involved in her transaction whatsoever),

[My] lender overlooked the appraisal/financing contingencies. Closing is in a week and no appraisal yet. Seller hasn’t walked but what recourse do [I have]. I have the lender admitting in an email that no one knew there were contingencies even though the contract quite clearly stated this. My realtor, mortgage broker, and I were all told different dates for when the appraisal would be done by over the last few weeks. The seller hasn’t voided the contract yet but wants this resolved ASAP (as do we all). With only a week left, there’s not much I can do except wait but I don’t think the appraisal was even done until today (if I can believe the lender, and I don’t know if I do at this point). I have a settlement attorney and plan to speak with him about the situation but is there anything that can be done? Even if the deal goes through, I plan to address this with the company (much of this has been documented on email, although of course the loan officer is difficult to contact). I’m not blaming the appraiser at this point until/if I get more information.

This is a crappy situation to be in. Should the lender drag their feet any longer, the outcome could be that Allison (or you if you’re in this situation) loses out on her home as well as the money and time she’s already invested in the moving process. And what if she/you were timing the purchase of your new home with the sale of your current home?!

The truth is that, as the buyer, you are at the mercy of the lender you choose and you often have less control over their actions (or lack thereof) than you may think. If the lender makes a mistake or drags their feet, you may have recourse. But recourse often comes after the damage has already been done which is too late. And recourse has little to do with control.

In case the previous paragraph made you tense up and say, “WHAT?!” or “You’re crazy!”, I’m sorry to disappoint. But that’s the hard truth about real estate. If it makes you feel any better, you’re not alone – almost everyone involved in the transaction including your buyer’s agent, the seller, the listing agent and the title company are at the mercy of the lender. As James A. Garfield once said, “He who controls the money supply of a nation controls the nation.”

Enough of the bad news…let’s get to the good news.

There are ways to avoid getting yourself in the situation in the first place. It requires some legwork, time out of your day and trust, but it’s well worth the investment.

• Ask friends, family, coworkers about their personal experience with the loan officer(s) they’ve worked with in their real estate dealings
• Check the loan officer’s references. It’s not just about price as is shown in Allison’s example
• Ask your real estate agent for recommendations on loan officers
• Make sure your loan officer works for a direct lender, not a mortgage broker
• Don’t just rest on a company name. It doesn’t come down to the company/lending institution, it comes down to the individual loan officer. Just like you may get bad service from one waiter and great service from another waiter at the same restaurant, the level of service you receive depends on the individual loan officer rather than the company they work for.
• Though credit unions are often thought of as having very competitive rates and being good to their members, the complete opposite is often true (trust me, I’ve dealt with 99% of credit unions and can give you story after story)
• Make sure that the loan officer is giving you options, recommending loan types that are suited best for you rather than just the one you want/heard was the best and that they back up their claims with hard facts and numbers. The lender I work closely with and trust implicitly once said, “If you think you need your appendix removed, I would hope that the doctor you went to would check out your appendix and overall body and health prior to removing it just because you thought you needed your appendix removed.”
• Get more than one quote. Talk to 2 or 3 different loan officers. Ask them for an estimate of closing costs and interest rate and compare them to each other. But don’t forget to check their references and remember that it’s not just about price.

All of these are important, but a very important one that is often overlooked or not given enough weight is getting recommendations from your real estate agent. And here’s why…

You’re just another customer to “XYZ” bank and “Joe Smith loan officer” – you may or may not ever work with “Joe Smith” ever again and the loan officer knows that you’ll probably forget their name within a month after the deal closes. They do not have as much incentive to treat you right and go above and beyond as they do with someone they know is a repeat customer.

That’s where your real estate agent comes in… A real estate agent who refers borrower after borrower is worth gold to the loan officer. This is especially true in this market where most loan officers are closing fewer deals and making less per deal than ever before. When it comes to clients who the agent refers, the loan officer will bend over backwards and put out fires faster than you can dial “911″.  They will go to such lengths to provide stellar service because the loan officer knows that if they screw up, the agent will no longer refer them anyone and a potentially large chunk of their income will vanish.

I can honestly and proudly say that not one buyer that has worked with the lender I recommend has every been in Allison’s position. Nor have they been anywhere near such a position. This is the power of long term and ongoing relationships with competent, experienced and honest people and vendors.

Some of you may not believe me and will insist on using a loan officer of your choice despite not heeding the warnings nor following sound advice. I sincerely hope things work out for you and that you don’t end up in Allison’s position or another one equally if not more severe.

To those who do their due diligence and trust those who are honest and have lots of experience in the field of real estate and financing, you will find yourself having no such story to tell as the one at the beginning of this post. And that’s worth gold in itself.

River Creek Real Estate Market Update – Single Family Homes

Here’s the latest on the single family home real estate market in River Creek (Loudoun County)…

Overview

The overall single family home real estate market in River Creek is balanced – neither a seller’s nor buyer’s market. Buyer activity is up (though it’s not a buyer’s market by any means) and homes are selling in a timely manner if they are priced, marketed and presented correctly.

If you are a River Creek buyer, you will see everything from overpriced to underpriced single family homes on the market. Have your Buyer’s Agent give you the comps on any properties you’re interested in so you know how the asking price compares to current market value. If a property is at or below market value, don’t expect to “steal” the property from under the seller. If the property is underpriced by a significant amount, expect to battle it out with other buyers’ offers (yes, even in the $1M+ price point).

If you are a River Creek seller, you don’t have an overabundance of competition, but you still have competition. If you price, market and present your property correctly, you will have buyers come through and an offer in your hands in a timely manner. If you are selling your house “short” and under price it to get an offer quickly, you may very well see multiple offers on the property.

Numbers/Statistics

The number of single family homes listed for sale 2011 YTD is up 7.5% from this time last year. Not so good for sellers, but good for buyers because they have more choices. But, in the end, this stat is washed out because…

The number of single family homes sold 2011 YTD is up 28% from this time last year. This increase is much higher than the increase in homes listed which is why it washes out the previous stat. This is great news for sellers because there is more demand and helps with market values. For buyers, it means that there are more buyers actively buying properties in River Creek and you may have to face some of them in competition for the same property.

The average number of single family homes that sell each month 2011 YTD is 3.13. This is a 28% increase over this time last year (2.26 per month average). More activity in the River Creek single family home market is good news for sellers and home owners. For buyers…see the paragraph above.

The current number of active single family homes in River Creek is 21. Based on the absorption rate (3.13 per month), there is a 6.71 month supply of single family homes in River Creek. Generally speaking, anything over a 4 month supply is considered a “soft/buyer’s market”. But considering the price point, 6.71 shows a balanced market. The reason for this is because the higher the price point, the longer the average days on market and months supply of inventory.

Summary

The single family home real estate market in River Creek continues to show increased buyer activity and is considered to be a “balanced market”. Though sellers will be happy about this, some buyers may not. But remember buyers…once you move in and become a River Creek home owner, you’re going to want the exact same thing you dreaded as a buyer – a strengthening real estate market in River Creek rather than a weakening one.

If you would like more information about the real estate market in River Creek or are interested in selling or buying in River Creek, click here to contact me.

What Happens if Loudoun Backs Out of the Dulles Metrorail Project?

Loudoun County is considering backing out of the Dulles Metrorail project. More specifically, Loudoun may back out of the last two planned stops on the Silver Line in Loudoun County- Route 606 and Route 772. If this happens, it will have a huge impact on Loudoun, its’ residents and home values.

Why is Loudoun County considering backing out of the Dulles Rail project?

• Loudoun officials want an above ground station at Dulles Airport far from the actual terminal versus MWAA’s more expensive $300 million underground station that drops passengers close to the main terminal.
• This additional cost is on top of the already $1 billion dollar increase in costs to the project. And costs could very well go up even more as the project moves forward.
• Loudoun is responsible for 4.6 percent of costs associated with the building of the project
• Due to the additional costs, tolls would rise to $6.75 (one way) with Federal financing and $10.75 (one way) without Federal financing

What happens to the Dulles Rail project and stations within Loudoun if Loudoun backs out?

• The last two stops on the Silver Line would be scrapped and the Metrorail would end at Dulles Airport
• Since the Dulles Airport station is in Loudoun County, Loudoun will still be responsible for the operation and maintenance of the airport station
• Parking at and around Dulles Airport would be affected – the proposed neighboring Route 606 Metrorail station would have provided parking garages with 6,000 parking spaces

The affect on Loudoun, its’ residents and home value if Loudoun back outs of the Dulles Rail project…

Developments well into (and even beyond) the planning and approval phases will be greatly scaled back if not scrapped altogether. We are talking about millions of dollars and thousands of man hours already spent only to be thrown away at the 11th hour.

We are also talking about Loudoun sending this message to Comstock, Claude Moore Foundation and other developers,
“Don’t take our word for anything. We may just change our minds at the last minute and leave you out to dry.”
This negative stigma will reputation will stick around Loudoun for many years to come. If you think that this may not affect you as a homeowner, think again…

The majority of Loudoun’s tax base comes from residential property taxes (aka homeowners). If the corporate/business tax base increases, the tax burden on homeowners would decrease. If the corporate/business tax base stays the same or goes down, the tax burden on homeowners will increase.

Furthermore, all of the cool developments, their amenities and positive affects on home values be no more. Just look at the affect metro had on Arlington back in the day and is having on Tyson’s and Reston today…

Once the metro came out to Arlington, property values went up. Arlington became a desirable place to live and has further prospered as an easily accessible area with developments and amenities galore.

Fast forward to Tyson’s and Reston today…property values in both areas started going up well before the rest of NoVA showed any signs of stabilization or recovery. I can give you countless examples of property values going up 10 to 30 percent over the last 18 months around the future Metrorail stations including roads and arteries to/from the Tyson’s and Reston stations. I highly doubt we would be seeing this type of appreciation without the metro.

Coincidence or not?

Is it mere coincidence or is thanks to the proposed metro stations at Route 606 and Route 772 that Brambleton, Loudoun Valley Estates, South Riding, Stone Ridge and other neighboring communities have seen sales go through the roof and values hold strong over the past 18 months?

Considering that every buyer I have come across looking in those areas over the last 2 years has mentioned the future metro stations as a reason for considering buying there, I’d say it’s definitely not a coincidence.

Now consider what would happen if Loudoun backed out of those stations.

I usually remain objective in my posts, but I’m interjecting my $0.02 this time…

- Yes, costs are important to consider. And yes, costs have skyrocketed. But you should have anticipated this if you’ve read even one U.S. history book in your lifetime.

- You should be looking hard for alternatives such as Federal financing/assistance rather than just thinking about scrapping the project.

- Consider the affects on the residents and overall reputation of Loudoun.

- Consider the good the proposed metro has had on the area already, its’ future positive impact and the negative impact it will have if its’ scrapped.

- Think long term rather than just tomorrow.

It would be a shame to see Loudoun County back out of the Dulles Rail project – for everyone’s sake. I hope Loudoun County can get it together and move forward rather than backward.

 

Photo Credit

Sub-$300K Loudoun Housing Market Remains Hot

The $300K or less housing market in Loudoun County continues to be hot. Properties in this price point are often selling within days and buyers are rushing to see the properties and put an offer in before they’re gone. For sellers, this a good thing. For home buyers, not so much.

Buyers

Just ask any of my first time home buyers or investors looking to pick up a property in that price point and you’ll see their facial expression change instantly. Why? Becuase the process usually goes something like this…

• The property is typically a short-sale or foreclosure
• The asking price is below market value so that the seller/bank will get an offer as quickly as possible
• Multiple offers are received on the property within 48 to 72 hours – sometimes up to 10+ offers
• Many of these offers are cash offers from investors with no contingencies and able to settle within 2 weeks
• Many of the offers are for more than the asking price because the seller/bank has purposefully priced the property below what’s it’s really worth
• Even though your offer (with financing) may be higher in price, the seller may go with a lower priced, all-cash offer because it’s less hassle with a higher chance of closing

Does this mean that first time home buyers in Loudoun County can’t compete with investors?

No. It means that road will be tough and you will need to have a lot patience. You will most likely write several offers on several different properties before your offer gets chosen. Despite the road being tough, every first time home buyer and investor I have worked with in this price point, both in Loudoun County and the rest of Northern VA has eventually found and bought a home that they love and that works for them.

Does this mean that investors will drive first time home buyers with financing out of the market?

Yes and no. Yes because I have heard from other agents that their first time home buyers have either given up from frustration or are waiting for the market to become less hot and cut throat before getting into it. But there are still plenty of first time home buyers out there that are patient and have prepared themselves well for this market through research and/or through their Buyer’s Agent.

Sellers

• There is a lot of demand for properties in the sub-$300K price range (aka lots of buyers looking at your house)
• Even if you’re house needs work, if you price it accordingly, buyers and investors will buy it in its’ current condition
• If you price and market your property correctly, you will have an offer, if not several offers in your hands within days
• If you have multiple offers, you are able to pick the best one that fits your specific situation and needs rather than picking the first one that comes through

Does this mean that sellers can price their property for more than market value and get away with it?

No. Sellers should be confident and smart, not greedy. Buyers are smart – they know what market values are like whether it be from their own research or their Buyer’s Agent providing them with comps (aka the sales price of similar homes that have sold in the same community within the past 90 days). Buyers would rather pass on an over priced property and wait for a properly priced property than spend more on a property than what its’ worth.

Does this mean that sellers should accept an all-cash offer rather than one with financing?

Not necessarily. Seller should always look at the big picture and the small details of every offer. In most situations, an all-cash offer is most desirable. But not every situation nor every all-cash offer is the same. Sellers and their Listing Agent should discuss the pros and cons of each and every offer before making a final decision on which one to accept.

Need more info or a list of homes for sale in the sub-$300K market? Contact me via email or on my cell and I’ll be glad to help.

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