This Week in Northern Virginia Real Estate - 4/12/2009
The market has really picked up inside the beltway in Northern Virginia for homes priced in the $250-$400k range. I have consistenly been one of multiple contracts for all of the properties I have written on for my clients. Some examples are:
1 of 6 contracts for a single family home that needed a lot of work in Falls Church priced around $250k (Foreclosure)
1 of 2 contracts for a single family home in Alexandria near Kingstowne that was listed at $375k (Regular Sale)
1 of 3 contracts for a townhouse in Falls Church that was listed for $400k (Regular Sale)
1 of 18 contracts for a townhouse in Annandale listed at $218k (Foreclosure)
1 of 9 contracts for a townhouse in Alexandria listed at $320k (Regular Sale)
There were also 5+ properties that I never even got to write an offer on because they had multiple contracts within 24 hours of being on the market. I am also starting to see multiple offers on Short Sale properties which no one was even bothering with before because of the lengthy process.
Another new development is that in multiple offer situations the sellers are not taking FHA contracts. They feel like the FHA Appraisal is going to be much lower and are afraid of appraisal problems. Also, if they have an offer where the person is putting down 20% they feel more secure with the fact that the loan will close. I have closed multiple FHA loans this year and haven't had any issues but I make sure that my clients are totally qualified before we even make an offer. Another thing that I have been seeing is properties that will only take conventional or cash offers. They know that the list of FHA Lender Required Repairs is going to be long and they don't want to deal with it. I have had lender required repairs on one of my sales and they knit pick everything. There was a small hole in the kitchen wall the size of a small water bottle and they required it to be repaired prior to closing.
ANNOYING ASPECT OF SHOWING SHORT SALES - I am sick and tired of calling ahead to show short sales and the people are at home sleeping, or the bedroom doors or locked, or the basement door is locked. Last week I went to a property where people were showering. I have seen men in towels sitting watching TV. I really don't need to see that! It is a waste of my time to show the property because my clients aren't going to buy something they can't see. This happens over and over again with short sales. The people should really start caring more because if they can't sell and they go into foreclosure it will reduce their credit score by 250-300 points. I always am courteous and call the day before so their is no excuse for this.
Deal of the week: Property with 5 bedrooms and 5 full baths on the upper level on 1.5 acres in Leesburg. My buyers closed on the property for $665k. It is over 3500 square feet on the top two levels not including the basement which is a full basement.