Listing Price Drops Will Help Drive a Fall Surge in Home Sales, according to Redfin’s Research Center. They predict that buyers will move into the market as we are seeing some price drops. “There’s blood in the water.” In other words, the market is shifting from a sellers market to a market favoring the buyer in some areas. In Washington, DC of homes for sale in July 2014, 31% had a drop in the listing price. Fewer homes are selling above their listing price. Prices here are flattening out. Redfin expects price increases to slow down. This helps buyers as they should regain some of the bargaining power lost last year.
Tag Archives: Buyer Resources
Winning a Bidding WAR
In a seller’s market like we find ourselves in now, there are proven methods to purchase a home at a reasonable price. But in this situation a well thought out negotiation strategy is a must. Importantly, when competing in a bidding war, you must guard against an emotion-fueled offer. In other words, know your limits before you begin to bid. Prep for battle with a sharp Realtor® and know the market. This article in Realtor.com provides the basics.
It is important to have solid financing; eliminate contingencies – carefully; choose a settlement date convenient to the sellers; offer to pay closing costs; personalize the transaction; try an escalation clause; and most importantly, control yourself.
Transportation Travel Time
Mapnificent creates dynamic public transport travel time maps. How is this helpful in Real Estate? Let’s say you work at the White House and you want to live within 15 to 25 minutes from work and you do not have a car (like about a third of us who live in DC). The map below indicates where you need to live to be just 15 minutes from the White House. This assumes a maximum of 10 minutes walk time to public transportation. Now you know where to narrow your home search. Check it out here.
Affordability and Time
Prices in the DC Metro area experienced a double digit increase in 2013. Interest rates are predicted to continue their slow and steady rise. The chart below shows what will happen to a monthly mortgage payment on a home purchased now, vs being purchased in next year. I am using an 8% increase in home prices over the course of 2014, (which is lower than 2013).
If someone in on the fence in thinking about buying, it is important to strongly consider the ramifications of not acting now.
How Buyers Stay Competitive
The market is swift, especially in sought after central DC. Homes, priced right, rarely stay on the market for long. In a market like this, it is the buyer’s turn to engage in Win/Win negotiations.
- It is important to negotiate, to stand above your competition.
- Know what you can borrow; and
- Get There First.
This is a great article in the Washington Post, April 9th that offers great advice on how buyers can stay competitive in our low-supply, high demand market.