President's Day Weekend: The Unofficial Start to Spring PDF Print E-mail
Tuesday, 19 February 2013 00:00

While the market has been quite active since the start of the New Year, it seems that this past President's Day weekend signified the unofficial launch of the Spring buying season.  Listings saw a modest bump in volumes... or at least that seemed to be the case in those neighborhoods in which I am currently working with clients.  Yet for whatever new inventory those listings brought to the market, it was far outstripped by the crush of new buyers entering the scene.

For attractively priced and attractively staged homes, multiple offers should well be expected, and planned for accordingly.  When putting in an offer in on newly listed properties, buyers looking to utilize FHA or VA loan programs may find their contracts passed over in favor of buyers using conventional financing or paying with cash.  The key reason for this is that for both of these programs, the additional emphasis and restrictions (and buyer protections) associated with the appraisal process can add an element of risk for the seller that they would rather just avoid entirely.  For buyers able to pay cash that might simply rather finance, consider making an all cash offer, settling in cash, and then immediately refinancing into a mortgage; your offer will have the strength and benefits associated with cash, and you will be able to take advantage of the still-low interest rates almost immediately after settlement.

Although without doubt it will usually be the case that exceptional properties go quickly, buyers playing a weaker financial hand may find their most viable options to be those properties that have been on the market for a bit of time.  Not all such homes will be dilapidated junk - homes that were priced too high at the outset but have had a price reduction or two, homes that were under contract and have since fallen out, and/or homes that were recently re-listed can all provide for "under the radar" options that might avoid the frenzy associated with newly listed homes.

 

Coldwell Banker Residential Brokerage
4500 Old Dominion Dr, Arlington VA 22207
Phone: (703) 524-2100 Fax: (703) 524-9014