So you want to sell your house?  There are about a hundred things that are running through your mind but ultimately it comes down to one decision.  What can I set the price at?  Many of the other factors are out of the seller’s control.  For instance, the number of homes on the market, the motivations of the other sellers, and possibly some foreclosures bringing down the prices in surrounding areas play a role.  Like any type of scouting, you’re going to have to scope out the competition.  This is where you’re going to have to get into research mode.  Check out the homes that are on the market in your neighborhood and comparable homes that have recently sold in the past three months.  This will give you an idea of what you may be able to list your home for.  Now if you want top dollar for your home, you better make sure your home is worth it.  I went into a home the other day that was priced at $849,999 in Fairfax, Virginia and the kitchen was tired.  What I mean by this is, it looked like it belonged in a home built in 1990.  None of the appliances were upgraded, the counters were from when the home was built 30 years ago, and the cabinets were nothing spectacular.  People come through a house and don’t want to have to do any work if they’re paying that much for a house.One thing you have to realize is price vs. value.  If buyers are not making any offers, then the price does not reflect the value.  As a seller, you cannot control the value.  You are not the one buying the home so your opinion does not matter.  However, location is a selling point.  If your home backs to woods or is on an acre of land, you’re going to stand out from the others.

The home that is priced at $849,999 has been on the market for 30 days now.  It’s the highest priced home in the neighborhood’s history.   There have been several offers but nothing has sparked their interest to work with any of them.  Soon the sellers will realize that they’re going to have to drop the price if they want to get it sold.  Don’t be a stubborn person when it comes to selling your home.  Your home is either worth the every penny of the list price or it’s priced too high.  If you’re not going to get the price you want, then don’t sell your home.  It’s that simple. 

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With the home searches and home data widely available to consumers on the internet, many homebuyers are looking for homes online.  This is a big difference from 5 years ago.  Many consumers are becoming internet savvy.  However, they are not real estate savvy.  Since the information is available to everyone on the internet, there is less chance they come in contact with a real estate agent.  Buyers in this market should think about getting a real estate agent to guide them through the home buying process, especially if you’re a first time homebuyer.  There are many things that a real estate agent can help you understand throughout the process.  They have a lot of knowledge of the market, what homes are selling for, how much people are willing to negotiate, negotiating extras, what to look for on a home inspection, and help you with securing your financing.  The thing about hiring a real estate agent is that it costs the buyer no money at all.  The reason for hiring a real estate agent is that they look out for YOUR best interest.  They are not working for the builder/seller.  No matter what the sales people or sellers may say to buyers, they want the best for themselves.  So before you think you can handle the entire home buying process by yourself, consult with a real estate agent.

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The real estate market in Arlington VA continues to be one of the strongest markets in Northern Virginia Real Estate, check it:

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Foreclosures are not what they used to be. Since the lending extravaganza, more and more Northern Virginia homes are falling into foreclosure because homeowners cannot afford to pay their mortgage. What does this mean? Well for starters, there are some bargains out there. Rewind a few years ago. You see, during the hot market, a lot of buyers got in over their heads. They thought because sellers were making big profits on the sale of their home, they would be able too as well. However, these sellers had purchased their properties when they were priced low. These homebuyers that purchased at the peak of the market had no idea it was the peak. Lenders were giving out loans to anyone during this time without proof of income or work history. Most of the homebuyers took out ARMs (adjustable rate mortgages) that would expire a few years later. These homebuyers had no idea that they wouldn’t be able to sell their home for a higher price in a few years. Fast forward a few years later. The ARM loans are adjusting and the mortgage payments are increasing thousands of dollars. What do the homeowners do that purchased at the peak who had ARMs? Some of them don’t pay their mortgage and the home goes into foreclosure. So with that being said, there are foreclosure homes that are fairly new out there. These foreclosures are in more desirable areas than observed in the past, and are getting scooped up by responsible buyers.

The increase in foreclosure homes can also hint at the bottom of a real estate market. Whether you live in the DC metro real estate market or plan to move there, a real estate professional can examine statistics to track the lowest foreclosure sales. Of course not every foreclosure is in a great neighborhood. You will find some of the best foreclosure deals in neighborhoods with new construction that sold in 2005-2006 that were priced above the median home price for that area. Most of the foreclosures in Northern Virginia are popping up in the suburb counties of Prince William, Loudoun and Fairfax, Virginia.

If you keep an eye out on the foreclosure market, it will give you a good idea of how well homes hold their value in your market. Who knows, you might find a great deal.

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30 yr fixed mtg		5.62%		5.65%
15 yr fixed mtg		5.21%		5.23%
5/1 ARM		5.39%		5.43%
30 yr fixed jumbo mtg		7.02%		7.05%
5/1 jumbo ARM		6.19%		6.25%

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I know this happens a lot with women when it comes to shopping and that’s why I never go to the mall with them.  You women know what I’m talking about.  You will go to the mall on a mission to find a pair of shoes and you come across the perfect pair at the first store you visit.  However, it’s too good to be true, so you have to go to every store in the mall to see if there is something better.  You spend an extra 2 hours strolling the mall just to find yourself coming back to the first store to purchase that perfect pair.  Although, sometimes you’re not that lucky and that pair has been swiped up by someone else.  That person realized that was the perfect pair and didn’t need any convincing. 

The reason I bring this issue up is because it has happened with a few of my clients.  In this market there are a lot of homes to choose from.  Just because there are a lot of homes out there does not mean that they’re the best homes.  With that said, if you find a home that you like, the chances that someone else likes that home are pretty high.  If you find a home that you really like, it doesn’t hurt to put in an offer on that home.  If the seller accepts the offer at the price you want then you just got a great deal.  I know it may seem too good to be true, but waiting around will only make things more difficult.  This buyers market is not going to be here forever and when it’s gone, it will be 100 times harder to get a home you like for the price you want.    

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