If you’re one of those people doing their home search right now, then you have probably heard that the housing market will continue to downward spiral. Of course this means opportunities for buyers. However, waiting for the market to bottom out (which no one can predict) may not be the best idea. Here are the top 5 reasons to buy right now and the top 5 reasons you may want to hold off.

Some markets in Northern Virginia have not hit their bottom yet, but they are not too far off. The Arlington, VA market hasn’t been affected as much as most areas in the DC Metro region. The pace of sales has slowed down, but the prices have held firm or in a few cases gone up. If you’re waiting for the Northern Virginia real estate market to hit absolute bottom, this puts you at risk in missing it and getting caught up in the market on the upswing. Plus, for some first time home buyers, owning a home just makes more sense from an economic and financial standpoint.

Homes that are situated in a great school district like Fairfax County and Loudoun County, are often not affected as much when the market goes south. The times that they depreciate, these neighborhoods are usually the fastest to recover.

Sometimes buyers get so caught up in the sales price that they miss out on a good deal. You have to ask yourself if it’s worth it to wait a few weeks to see if the home goes down $10K-$20K. It’s a gamble you’re going to have to take. Or is it? For those first time home buyers, look at your mortgage payment when you’re debating whether to pay an extra $10K for a home. Assuming a buyer pays $300,000 rather than $310,000 on a 5.7%, 30-year loan with $30,000 down, they’d be paying $1,575 a month rather than $1,634. Not so bad is it?

Now of course there are those people who bought their home a few years back and if they were to sell their home now, they would end up losing out. These people are encouraged to stay with their home and not think about buying, unless of course you can afford it.

5 REASONS TO BUY

1. Prices in the neighborhood you are interested in are relatively stable. Either they are holding their own or increasing, or the pace of decline is slowing significantly. If you have to move and don’t like apartments, the small penalty you pay for missing the bottom may not mean much.

2. You plan to stay in the home for more than five years. If you can stick it out that long before selling, economists say you’ll probably ride out any downturn and come out ahead on price

3. Your rent rivals a mortgage payment. If you can afford to buy, it can give you one bonus that renting can’t: mortgage-interest deduction on your taxes.

4. You’ve found the right house in the right area for you. The schools are great. You love the area and know it would be hard to find another house like the one you have your eye on. In a better market, you would most likely have much more competition for that home.

5. You’ve built equity in your house and are moving to a place where homes are cheaper. In your new market, your money will go a lot further.

5 REASONS TO HOLD YOUR HORSES

1. You’ve lived in your house less than two years. Chances are you haven’t had enough time to accumulate equity in your home. Indeed, you may have negative equity, if you live in many areas such as California, Florida, Arizona or Nevada.

2. Your job security is uncertain. If your company or business is in distress, it’s probably better to stay put until the smoke clears.

3. You don’t plan to stay in your next house at least five years. While it’s not important to buy at the exact bottom of the market, it is important to stay long enough to ride it out completely.

4. You don’t have good credit or a decent down payment. Do you have a job and income you can document? As a result of the subprime lending crisis, lenders are much more careful about whom they’re giving their money to.

5. You have an existing home to sell in a neighborhood where prices are dropping precipitously or where the number of foreclosures is spiking. In this climate, you’re probably better off waiting out the storm.

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If you’re purchasing a home for the first time, you will run into this thing called Title Insurance. It’s not the same as the rental insurance you neglected to get in college because you knew all your neighbors. No, this is about 10 million times more important. Title insurance is protection against loss arising from problems connected to the title to your property. Before you purchased your home, it may have gone through several ownership changes, and the land on which it stands went through many more. There may be a kink in the chain at any point that could become a problem. Some of these kinks could be a forged signature in transferring the title, unpaid taxes, or liens on the title. By having Title Insurance, you are insured for any claims or legal fees if these kinks were to arise.

The title company conducts an in-depth search to detect, prevent, and eliminate risks and losses caused by title problems. This is done by searching public records to develop and document the chain of title by identifying all outstanding claims. To sum it up in a nutshell, if you have a mortgage, you need title insurance. The price may seem high but if any problems were to come up, you’ll have no worries.

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As most of you know from the recent real estate news, new home builders are having a hard time selling homes in the DC Metro area. Therefore, more homes and condos in Northern Virginia and Washington DC are available to purchase than one would expect. Is this a good time to buy? It depends on your situation. If you plan on buying a home because of the recent interest rate cuts, make sure you plan to living there for at least 3 - 5 years. This way you can weather the times if there is any downturn in the market.

If you plan on buying a new home, then turning around to flip it for a profit in the next year or two - I would say that now is NOT the time for you to buy. The best deals from what I’ve seen lately in Northern Virginia and DC are new construction homes and foreclosures. I have typically seen the largest price drops in these types of homes recently. Not to say you can’t find a great deal on a resale home, but sellers who have bought within the last 3 years (and did 100% financing) are many times “upside down” and don’t have much room for negotiations.

Many first time home buyers are unaware that the sales agents at these new home communities work FOR the builder. What does this mean? Well, it means that they are on the builder’s side and are looking out for the builder’s best interest. The reason I bring this point up is because you should always visit a new home community with representation from a real estate agent. Your agent will look out for your best interest, including pointing out design flaws, giving resale pointers, justifying comps, factoring in incentives, assisting with contingencies, making sure you are protected and negotiate on your terms. It doesn’t cost you any more to use an agent and the price of the home stays the same, so why wouldn’t you utilize the expertise of a real estate professional?

Click the link below to watch the video from Kiplinger. (heads up, there is a 10 second commercial before the actual video)

Buy a Newly Built Home Now?

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A unique high rise condo in Fairfax, VA known as the Elan at East Market. The luxury of this condo is unlike anything you’ve seen in the area. Filled with mostly garden-style- 4 story condominiums in Fairfax, this Northern Virginia high rise condo is in a league of its own. You have convenient access to Rt. 66, Rt. 28, Rt 29, Rt. 50 and Fairfax County Parkway. The Elan is located right in the heart of the hottest area of Fairfax VA- smack dab in between Fair Oaks Mall, Fairfax Corner, Fairfax Towne Center, Fair Lakes and many fine restaurants like PF Changs, Rio Grande, Coastal Flats, Ruth Chris, Cheesecake Factory and many more are right around the corner.

With the convenience of an on-site gym, state-of-the-art business center, underground garage parking, two-level cascading pool and designer party room, you have everything you need. Prices start in the mid $200k’s for 1 bedroom condos with 675 - 736 sqft.  Prices for the 2 bedroom condos start in the lower 400’s with 1078 - 1201 sqft. Though the Elan is definitely a unique, urban-type condominium in an area of Northern Virginia that isn’t accustomed to this type of product, it shouldn’t come with the Arlington price tag. The 1 BR’s are priced ok, but the 2 BR’s are overpriced by about 50k in my opinion. They would be a good buy selling around the $350k price range. I’m betting on the developer coming to their senses soon and dropping the price to fair market Fairfax value. Otherwise they will find themselves in a bind if they keep the current price tag.

An underground garage parking space is included in the price. Units feature: 9-10 ft ceilings, crown moulding in living/dining room, gas fireplaces available, balconies, floor-to-ceiling windows, track lighting, GE appliances, granite counters, maple cabinetry, ceramic tile in kitchen and foyer, and separate whirlpool tub and shower in master bath. Some of the loft units have higher ceilings with exposed duct work for the city-living urban appeal.

If you would like to visit the Elan condos in Fairfax, Virginia, be sure to contact us at 1-888-998-9455 or at info@homezill.com to receive a 2% cash back home buyer rebate at the Elan or any other new Fairfax VA homes.

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Location, location, location best describes the new Avera Station condos in Vienna, VA. Situated within a 4-minute walk to the Vienna Metro station, the 250-unit Orange Line condos at Avera Station are convenient to all major access roads including Rt 29, Rt 50, I-66 and I-495 Capital Beltway. The Town of Vienna, voted Top 5 Best Places to Live by CNN & Money Magazine is only a few minutes away. The 4-level condominium community has 5 elevators and 2-levels of underground parking. All condos come with at least 1 reserved garage parking space, and any condo with over 1220 sqft comes with 2 spaces already included in the price.

These pre-construction condos in Fairfax County have some of the finest finishes that would impress any home buyer. Some of the standard features include: Beautiful Bruce® 5″hardwood flooring in living areas and kitchens, bedrooms/dens featuring plush carpeting in a variety of colors and textures, installed flat-panel 42″ plasma television, gourmet open kitchens, granite countertops (in kitchen and bathrooms), 42″ maple cabinetry, Moen Satin chrome fixtures and GE Profile™ stainless steel appliances, and full size front load washer and dryer. The amenities that Avera Station offers include: Club-class fitness center with state-of-the-art exercise equipment, a stretch room and locker room/shower, outdoor pool with lounge area, expansive clubroom featuring a sports bar, game room and great room, private screening room with theater seating, cozy library with Internet connectivity, on-site maintenance staff just a phone call away and also concierge service.

The Avera Station condominiums are very affordable at newly reduced prices:

1 br’s from 626 - 824 sqft starting at $272k, condo fee: $206
1 br+den at 843 - 849 sqft starting at $350k, condo fee: $252
2 br’s from 907 - 1,331 sqft starting at $368k, condo fee: $320
2 br+den at 1,262 - 1,331 sqft starting at $489k, condo fee: $397

They are over 60% sold at Avera Station and first deliveries start in Mar/Apr ‘08. A wide variety of floor plans make Avera Station a unique community compared to other condos in Fairfax Virginia. There are buyer incentives of $5,000 for 1 bedroom condos, and $7,500 for 2 bedrooms condos towards home buyer closing costs. Condo fees range from $250 to $450 covering basic services. Investors are welcome.

To schedule an appointment at Avera Station condos, please contact us at 1-888-998-9455 or at info@homezill.com, and ask us about our additional home buyer rebate of 2% cash back if you choose to purchase at Avera Station in Fairfax County Virgina.

(pictures were taken during pre-construction phase, check out this virtual tour for a better idea of how the condos will look after completion)

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As one of the exceptional new condos in Washington DC, Ten Ten Mass is the definition of super luxury. Located in the heart of Washington DC real estate, giving you convenient access to everything. When you walk through the doors and step into the lobby, a whole new world opens up. The feel of peace overwhelms you as your eyes scan the lobby of elegance. This 14 floor hi-rise condo gives you breathtaking views of the DC city. This is one of my favorite condo buildings in Washington DC. Some of the features include: rooftop pool, secured underground garage parking, 24-hour front desk, floor-to-ceiling windows, hardwood floors, granite countertops, private balcony/terrace (per plan), GE Profile stainless steel appliances, soaking tubs (per plan), open kitchen, and 9,000 sqft of retail! The one bedrooms start in the $400’s and the 2 bedrooms start in the $500’s.

To view these unbelievable DC condos, contact us at 888-998-9455 or info@homezill.com and receive 2% cash back when buying any condo at Ten Ten Mass (1010 Mass).

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