Though not all buyer’s today were even considering a new home in 2003 and 2004 they have certainly read what happened. Multiple offers, escalation clauses, fewer contract contingencies and overall mayhem. Fortunately the mayhem hasn’t started but the first three items have.
My advice to buyers is don’t get carried away. We know appraisals are still tight so unless you plan on emptying your pockets of all your spare change writing an offer over recent comps is likely to end in disappointment.
Make sure you know your budget and are fully pre-approved for a mortgage. Even if you are a VA buyer be ready to make a solid earnest money deposit (you’ll probably get it back at closing) and understand with the shift in the market that sellers may not be willing to pay all of your closing costs.
In Springfield VA since January 2013 there have been 50 detached homes sales with an average sales price of $454,348 with the average seller subsidy of $3772. That’s less than 1% assistance. Last year for the same time period the average sales price was $411,894 and the average subsidy was $4749.
In an inventory strapped market be prepared to talk though your offer strategy with your Realtor® before you fall in love with a home. Understand all of the options in a Northern Virginia home contract and how best to structure an offer which is a nice blend of the sellers needs and yours.
Oh and I’ll continue to say don’t forget about new construction as an option. There are builder quick delivery homes throughout the area. Builder can be more flexible in closing assistance than a seller who may be tight on equity and they don’t like to sit on inventory for very long.
If you are still looking for a Realtor® to assist you in buying a home in Northern Virginia give CJ Realty Group all call at 703-249-9763 to discuss your real estate needs.