Housing inventory has decreased. In many of the sub-divisions where I sell homes, the number of available homes is significantly lower than is was 2 months ago. This is due to 1.) increased sales in the last month or so and 2.) sellers taking homes that didn't sell off the market.
Whatever the reason, the market seems to be correcting (as normally happens in a free market). Now the question is - are we approaching a balanced real estate market, or even a sellers market again, or will a slug of new listings in the spring push us back to a weak (or buyers') market?
Stay tuned...
Tuesday, December 26, 2006
Tuesday, December 19, 2006
Find the Right Contractor
There are so many bad contractors out there it scares me. From both my experience and experiences of friends and clients I learn about contractors who never call back, even after several attempts to reach them. Or ones who show up late for apointments. A client had an experience the other day where she met with a contractor , received an estimate and then the contractor never showed up to do the job and never call. Aftyer she finally reached him, he said the job was too small and he couldn't be bothered. You must be kidding...
Anyway, I have a list of contractors for all types of jobs that are not only responsive (yes, they will call back) but do excellent work for very competitive prices. Some were my real estate clients originally and, because of our personal relationship, take excellent care of people I refer to them. One big contractor even gives a 10% discount off his published rates for clients I send him.
Feel free to contact me for the name of a contractor and, if I know a good one for that specific job, I will be glad to pass on the name and phone number. Bob
Anyway, I have a list of contractors for all types of jobs that are not only responsive (yes, they will call back) but do excellent work for very competitive prices. Some were my real estate clients originally and, because of our personal relationship, take excellent care of people I refer to them. One big contractor even gives a 10% discount off his published rates for clients I send him.
Feel free to contact me for the name of a contractor and, if I know a good one for that specific job, I will be glad to pass on the name and phone number. Bob
Sunday, December 10, 2006
Buyers are starting to show up
I have noticed that we are getting many more showings of our listings than last month. Maybe (hopefully!) the real estate slump in the Washington DC / northern Virginia area is finally ending.
Most potential buyers should consider buying now, while they can still buy homes in near perfect condition without overbidding. This is exactly what savy buyers are doing. Unfortunately, most people plan on waiting until they are 100% sure we are at the bottom of the real estate slump. By the time we are sure the slump is over, it may be too late for most buyers.
The only way we will know for sure that the slump is over is when people start buying again and prices are rising. Due to strong job growth in this area, history tells us prices may rise quickly. By that time, it will be too late for many potential buyers to get into the housing market in northern Virginia. When prices start to go up around here, and people start to overbid to buy a home, only those buyers with extra cash will be able to afford the best places. This is because the banks will insist the buyers cover any overbidding, above appraised value, with cash.
Unfortunately, as in previous up markets, this means those buyers without a lot of extra cash will wind up buying the homes that are not in such good shape, where there is no bidding war. Because these buyers don't have a lot of extra cash, most of these homes will stay in poor shape.
Unless you want to buy a foreclosure or fixer upper home, and spend a lot of time and money fixing it yourself, the way to get the most from a home investment NOW is to buy a home in near perfect condition, in the best location you can afford, and then maintain this home in near perfect condition. When you eventually go to sell the home, potential buyers will recognize how well you have maintained it and offer you the best price possible. - Bob
Most potential buyers should consider buying now, while they can still buy homes in near perfect condition without overbidding. This is exactly what savy buyers are doing. Unfortunately, most people plan on waiting until they are 100% sure we are at the bottom of the real estate slump. By the time we are sure the slump is over, it may be too late for most buyers.
The only way we will know for sure that the slump is over is when people start buying again and prices are rising. Due to strong job growth in this area, history tells us prices may rise quickly. By that time, it will be too late for many potential buyers to get into the housing market in northern Virginia. When prices start to go up around here, and people start to overbid to buy a home, only those buyers with extra cash will be able to afford the best places. This is because the banks will insist the buyers cover any overbidding, above appraised value, with cash.
Unfortunately, as in previous up markets, this means those buyers without a lot of extra cash will wind up buying the homes that are not in such good shape, where there is no bidding war. Because these buyers don't have a lot of extra cash, most of these homes will stay in poor shape.
Unless you want to buy a foreclosure or fixer upper home, and spend a lot of time and money fixing it yourself, the way to get the most from a home investment NOW is to buy a home in near perfect condition, in the best location you can afford, and then maintain this home in near perfect condition. When you eventually go to sell the home, potential buyers will recognize how well you have maintained it and offer you the best price possible. - Bob
Friday, December 1, 2006
To Sell Your Home - Make it Shine
There are so many homes for sale right now in the northern Virginia area, that we have been advising our clients to make their homes shine - I mean really, really shine! Basically, the home has to be perfect. If not, potential buyers will simply buy another one that is close to perfect. Making the home perfest will help get their homes sold quickly and for the highest price.
This is hard for many sellers to accept, especially since many of the homes were bought when it was a seller's market and the buyers had to bid on homes in less than perfect condition.
In addition, many sellers don't have the money to pay for the renovations before they sell. For this reason, we refer them to several contractors who will accept payment for their work at the time of settlement. This makes it easier for most sellers to make the changes now in order to sell their homes quickly and for the highest price. Bob
This is hard for many sellers to accept, especially since many of the homes were bought when it was a seller's market and the buyers had to bid on homes in less than perfect condition.
In addition, many sellers don't have the money to pay for the renovations before they sell. For this reason, we refer them to several contractors who will accept payment for their work at the time of settlement. This makes it easier for most sellers to make the changes now in order to sell their homes quickly and for the highest price. Bob
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