Slow May For Arlington Real Estate

It was a slow month of May for Arlington real estate. The market seemed to take a huge pause in activity, showings, and contracts. The statistics for the month certainly support that: average prices fell 1.47% from last year, units sold were 289 compared to 310 last year, days on the market increased to 44 (up from 33 last year), and sellers averaged 98.4% of asking, which is about 1% less than we’ve been trending. Here are the stats broken out by location and type of property:

Single Family Homes

N. Arlington Average Net Sale Price: $1,033,509 in 26 days
Range: $404,250 – $2,482,000
S. Arlington Average Net Sale Price: $689,584 in 21 days
Range: $450,000 – $1,175,000

Townhomes
N. Arlington Average Net Sale Price: $838,181 in 16 days
Range: $635,000 – $1,202,000
S. Arlington Average Net Sale Price: $575,535 in 18 days
Range: $350,000 – $755,000

1 Bedroom, 1 Bathroom Condos
N. Arlington Average Net Sale Price: $370,681 in 19 days
Range: $207,000 – $620,000
S. Arlington Average Net Sale Price: $258,206 in 65 days
Range: $118,000 – $372,900

2 Bedroom, 2 Bathroom Condos
N. Arlington Average Net Sale Price: $599,400 in 32 days
Range: $400,000 – $888,000
S. Arlington Average Net Sale Price: $428,341 in 24 days
Range: $284,000 – $576,000

Search Arlington Homes For Sale or Find Out What Your Arlington Home Is Worth

Just Sold at Station Square

Print_Amenity-Front Elevation (3)This CUTE 1 bedroom plus den, 1.5 bathroom condo in Clarendon at Station Square just sold!

1201 N Garfield Street Unit 810, Arlington, VA 22201
Sold for $535,000 in 16 days
934 sq ft
1 Oversized Parking PLUS 1 Storage Unit
Hardwood floors throughout the dining room and living room
Carpet in the den and master bedroom
Master Bedroom has a walk-in closet with custom Elfa Shelving
Pantry! Washer/Dryer in unit! Coat closet!
Condo fee: $358.76

For virtual tour and floorplan, click here.

Back Up Offers in Virginia

Did you know you can submit an offer to be a backup offer? Let’s say you missed out on a house, either you didn’t “win” in a multiple offer situation or perhaps the property went under contract before you had a chance to see it. Either way, you’re looking at being the #2 should the first contract fall apart. plan b

How do they work?

You negotiate all of the terms of the contract including price, contingencies, financing, and potential close date (usually measured in days rather than a hard date). The contract is then in the waiting wings should the first contract become void. If the first contract actually closes, the back up offer just becomes paper to shred. However, if the first offer is voided, the backup offer instantly becomes the new ratified contract upon notice from the seller. Then all contingencies and terms start from that date of notice and closing would take place X days from then too.

Why would you want to be a backup offer?

If there were a lot of offers the first time, this would eliminate the need to compete again.

Are there any downsides?

Not really. The buyer of the backup offer can deliver notice at any time that the offer is being pulled and is no longer in play anytime until the seller delivers notice that it is now in effect.

Why should you take one as a seller?

You don’t lose any more time if the first offer falls through. You instantly have a backup plan, and go right back to being under contract and working towards closing.

Submitting An Offer with A Deadline and How to Evaluate It As A Seller

offer deadlineIn the last 30 days in Arlington, 282 properties closed. 112 of them sold in under a week. With that stat, it shouldn’t be a surprise that 35% of those 282 sales sold at or above asking price. In the first week, that number was over 75%. So what do you do in a market that competitive?

Some people think submitting an offer with a deadline, forcing the seller to make a decision, is one way to go about it. I think this is a polarizing position – some sellers will be put off by it, some will encourage it. It totally depends on the seller and their situation and whether that tactic will work in your favor or not.

How it works: you go see the property ASAP and usually there’s an open house scheduled for Sunday that people this is the end all/be all for multiple offers, usually followed by a Monday or Tuesday offer submission deadline. Instead, you’re fed up with waiting for the weekend to be over for the seller to accrue 6 offers and you lose, yet again. So you decide to write an offer on Saturday morning with a 12-24 hour deadline for a response or the offer is D.O.A. Take it or leave it!

Why this could work and why it could backfire:

1. If the sellers are really bottom line driven and are hoping for multiple offers with waived contingencies and escalation clauses, they’re going to want to wait for the market to have the most time and exposure of their home. If you want it, their mentality is someone else will too. So if you walk away from the house, someone else will be there. They may call your bluff on whether you’ll actually pull your offer off the table.

2. If you have a nervous seller or anxious seller who just wants to be done with the process (think a listing that has been offered for sale in the past with no luck, someone with pets/kids/elderly or anyone who makes it hard to show the house and/or keep it clean, a divorce, a baby, any stressful selling situation!) you might get lucky and find someone who just wants to sign a contract and be done with it.

3. If you’re going to give a deadline, make it attractive enough that someone wouldn’t want to let it go. Don’t low ball, don’t make all sorts of crazy conditions, just make it really easy for a seller to want to take it.

Should We Do A Preinspection?

house_inspectedI’m not a huge fan of waiving home inspections, even if you’re a very handy buyer. You never know what you’ll find once you start taking off the electrical panel, going up in the attic, looking in the chimney, or going on the roof. You just can’t always tell what’s behind door #3….

The Arlington housing market is still very cut throat with buyers waiving all contingencies, using escalation clauses to go well above list price, offering free rentbacks, and so many other “add ons” to “win” the bidding war. A trend that was big in DC and has now moved its way into Northern Virginia is called a Pre-Inspection.

With permission from the seller, you can do a full home inspection on the property before you submit an offer, allowing you to:

  1. Find out the condition of the property, including any necessary or recommended repairs
  2. Waive the inspection contingency
  3. Factor any repairs into your offer price
  4. Rule it out completely

What you have to gain in most cases outweighs what you have to lose. If you don’t win, you’ll be out the time and money you spent on the inspection. However, I think losing a few hundred dollars is much better than potentially buying a house that needs thousands of dollars worth of repairs and not knowing it.

It’s a tight turn around if there are multiple offers, usually just a few days after it goes on the market, so you need a quick thinking and acting Realtor to get everything setup with time for you to look over the results and decide if you want to pursue it or not.

Sweeping Real Estate Price Increases in Arlington, VA

During April, there were huge real estate price increases in Arlington, VA. A total of 242 properties sold during April, for an average increase of 8.6% over last year, days on the market averaged 42, and sellers averaged 98.3% of original asking price. Of the 242 sold, 113 of them sold in under 10 days (47%). More importantly: condos increased 6.62% over last year, townhomes with 3+ bedrooms were up 18.5% and single family homes with 4+ bedrooms were up 14.06%.

Single Family Homes

N. Arlington Average Net Sale Price: $1,027,196 in 27 days
Range: $596,600 – $2,665,467
S. Arlington Average Net Sale Price: $668,971 in 56 days
Range: $465,000 – $1,125,000

Townhomes
N. Arlington Average Net Sale Price: $880,000 in 20 days
Range: $530,000 – $1,500,000
S. Arlington Average Net Sale Price: $561,200 in 23 days
Range: $367,500 – $886,500

1 Bedroom, 1 Bathroom Condos
N. Arlington Average Net Sale Price: $349,999 in 41 days
Range: $169,900 – $575,000
S. Arlington Average Net Sale Price: $251,457 in 24 days
Range: $99,000 – $374,900

2 Bedroom, 2 Bathroom Condos
N. Arlington Average Net Sale Price: $682,707 in 32 days
Range: $293,000 – $1,389,900
S. Arlington Average Net Sale Price: $399,296 in 43 days
Range: $200,000 – $645,000

Search Arlington Homes For Sale or Find Out What Your Arlington Home Is Worth

Exxon Relocation and the Housing Inventory, What You Should Know About Purchasing a Relocation Sale

There’s been an increase in inventory both in Arlington County and surrounding areas like Fairfax County, and some of it is attributed to the relocation underway of all Exxon employees to Houston from their current Merrifield location. Every employee who owns a home  will have the option of selling through the relocation company. Currently, there are over 130 homes active or pending on the market for sale that’s a corporate relocation. Most of them are Exxon employees, but not all, which is causing an extra spike in inventory in addition to the normal Spring influx.

As a buyer, here’s what you should know about purchasing a relocation sale:

1. All initial negotiations are done verbally. Yes, you’ll submit the normal contract and addendum with the additional relocation company disclosures, and then negotiations are done with the actual owner.

2. There will be lots of extra paperwork. Most of it will say they know nothing of the actual property!

3. It can take a few extra days to get a ratified contract back.

4. They will require a bigger deposit with the contract than our local market usually needs.

5. They generally don’t allow a rentback option.

 

Under Contract At Station Square

Print_Amenity-Front Elevation (3)This CUTE 1 bedroom plus den, 1.5 bathroom condo in Clarendon at Station Square is under contract!

1201 N Garfield Street Unit 810, Arlington, VA 22201
$542,500
934 sq ft
1 Oversized Parking PLUS 1 Storage Unit
Hardwood floors throughout the dining room and living room
Carpet in the den and master bedroom
Master Bedroom has a walk-in closet with custom Elfa Shelving
Pantry! Washer/Dryer in unit! Coat closet!
Condo fee: $358.76

For virtual tour and floorplan, click here.