Washington DC, Maryland and Virginia Areas Showing Strong Signs of Seller Climate

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In 2007 and even as recent as last year, many sellers were hesitant to list their home on the market – and with good reason. Since then, we have been reporting some big changes across the board despite our market not being hit by the market crash as hard as the rest of the nation.

Here are some numbers as to how we are doing in some of our communities, which provides a snapshot as to why now may be the perfect time for you to reconsider whether or not you want to list your home. These numbers might surprise you.

Alexandria saw a 27% drop in inventory with nearly a 7% increase in sales volume.

Arlington experienced an unprecedented 44% increase in the number of sales and a huge decrease in inventory with 26% fewer properties on the market.

Fairfax also reported a decline in inventory with 21% fewer homes on the market, combatted by a 12% increase in sales.

Montgomery County broken down into apartments, condos and coops versus single-family homes stacks up like this: Condos and coops inventory is down significantly by 39% while sales are only reported down by 1%. Single-family home sales in Montgomery County were up 4% with a 22% drop in inventory.

Washington, DC saw a 13% rise in sales with a 32% drop in inventory for apartments, condos and coops. Single-family homes in DC accounted for 5% fewer sales and 35% fewer available homes on the market.

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With our extreme dip in inventory levels, and corresponding increase in sales – there is no question that sellers will enjoy the benefits of placing their home on the market now. Not only is there a strong chance for multiple offers and bidding wars for highly desirable properties but also sellers are able to demand top dollar for their homes.

To evaluate your situation and for a customized look at your home and what you might expect to receive for it upon sale, contact me today at carlos@enggarcia.com or 202.290.1313. We look forward to serving you!

How to Stay Competitive in Today's Market

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As a buyer in DC, Maryland and Virginia, where the market has now shifted toward a seller-controlled environment, you are facing sellers with more leverage because of the declining inventory.

And as would happen typically in a market where there are fewer properties and more buyers, we often end up with multiple buyers vying for the same property.

How do we handle that?

This is where we step in and institute some key techniques and methods that will put your offer on top. Imagine, a seller that has sat and watched the past five years go by with little to no control over their home selling situation. Now, they list their home and suddenly they are receiving not one, not two but several offers (if not more). Traditionally, you’d expect them to go for the one offer that is the highest price. But there are additional factors that could impact their decision.

How Badly Do You Want the Property?

A very important question that we ask our clients when dealing with a competitive situation, is just how badly do they want the property? Are they so in love with it that they are willing to obtain it at all reasonable costs? Is timing a factor? Is this purchase simply a passing-by interest that may or may not be essential for their happiness? Their answer will point to how we would approach the situation.

What Are the Internal and External Situations?

Once you have determined how important this property is to you – we move on to evaluating the environment. From an external perspective, we look at the overall marketplace and how it's been performing. We also gauge what a reasonable price to pay for the property while also considering the maximum amount you're willing to pay if competing.

From an internal point of view, we try to gauge the seller’s position and determine their motivation in selling their property. Are they looking to relocate and are on a time constraint? Are they selling for financial reasons? Through our conversations with the listing agent, we develop a strong rapport with them and begin to understand the areas where we may have more leverage.

Finally, we also look at the internal situation of the buyer. If there are factors that make this a key purchase to pursue, such as wanting to lock in a specific interest rate, a family situation or financial motivation, we approach it more aggressively.

How Can We Stand Out in a Crowd?

Once we have evaluated everything, we then work on accomplishing those goals. There are many ways to stand out in a crowd, particularly when it’s a matter of several buyers competing for one property. Some of the things we can do to present a more attractive offer to the sellers include eliminating contingencies in the offer, offering a larger down payment and catering to the seller’s needs.

Contingencies are set up to protect both the buyer and seller but in Maryland, Virginia and DC, the buyer has a very powerful right to walk away at any point after a home inspection is done. A way to get around this, thereby creating less hassle for the seller without sacrificing the peace of mind that you as a homebuyer desire, is to have a pre-offer home inspection conducted.

Larger down payments make for more secure mortgage processing and therefore a smoother process overall. Not only does this demonstrate to the seller that you are very serious about purchasing their home but it also sets you apart from other offers where there may be lengthy procedures before the closing.

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There are numerous things that we can do to work with your situation and we devise a strategy with each unique case. Contact us today to find out how we can assist in your real estate endeavors! We can be reached by telephone at 202-290-1313 or via email at info@enggarcia.com.

Housing Recovery Finally Hitting Most Markets Across the Nation

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After what seems an eternity, many markets are finally reporting strong improvements across the board in their local real estate markets. In a recent article, CNN Money reported an increase in home values for the first time in five years. This is promising news for much of the nation though our own vicinity has not been as hard hit by the recession and housing crisis of 2007 as it has everywhere else. 

This recent Washington Post article, along with many other reliable sources, cite the DC area as being one of the last in the country to get hit by the recession and the first to recover. With nearly 50,000 jobs created just last year and a continuously strong job market, we have been fortunate to avoid the crippling effects of high unemployment. Those same national unemployment numbers had a derailing impact on many markets.

The sales numbers in our area of DC, Maryland and Virginia show promising increases with a 10% jump in sales volume and an unprecedented 5% increase in prices this year compared to last. Inventory continues to dwindle, leading to multiple offer situations and even bidding wars for especially desirable properties.

We spend a good amount of time following national, regional and local trends. If you would like to access some of the research that our team collects so you can get a snapshot of the marketplace, we invite you to contact us at either info@enggarcia.com or by calling 202.290.1313. We look forward to hearing from you!