So you’ve thought about it and decided this might the year you get ready to buy a house, or sell the one you currently own. Maybe you’re not ready today, maybe you’re thinking 6 months from now…but how soon is too soon to call a Realtor to talk about it?
Those of you thinking about buying:
When: Within a year.
Why: The market changes. There are always changing parts of the real estate process, whether it’s changes in mortgages (like down payment amounts) or the market in general, so what I tell you now, may be different in 12-18 months. It’s better to get an idea of the process, the cash you’ll need, and what your expectations should be now, so you have time to get your ducks in a row when it’s time to make a move. Prices may change, maybe not drastically, but things change year to year. Interest rates may go up or down, increasing or decreasing your buying power, etc. There are a TON of factors that play into how much you can afford and/or how much you’re willing to spend…my belief is that it’s better to get more info up front than less.
Those of you thinking about selling:
When: 6 months to a Year
Why: Depending on what waits for you on the other side of the sale, there may be a “game plan” you haven’t considered prior to meeting with an agent. The real estate market has seasons, so unless you need to move right NOW, it may or may not be more advantageous to wait to a certain time to sell. There may also be some repairs or changes you can make to increase value and saleability that may take some time (think purging, declutter, paint, etc.)
In general, it’s better to open the lines of communication early. Find out what you need to do to make the process go smoother, and more on your timeline.
Last month Arlington real estate prices were up 3% from April 2009; May activity shows another increase from last year. Overall, the Arlington condo market is up 1% in average net sale price, while townhouses increased 4% and single-family detached properties increased 5%. Days on the market decreased for all markets: 30% for condos, 26% for townhomes, and over 63% for detached properties. Of the 282 sales in May, 12 were short sales and 11 were bank-owned properties, making just over 8% of the market “distressed.”
Selling at higher prices faster? True for most of Northern Virginia, especially Arlington County.
Average Net Sale Price and Average Days on the Market
Single Family, Detached Properties
North Arlington: $796,977 om 37 days (Range: $470,000 – $1,665,000)
South Arlington: $599,849 in 34 days (Range: $314,594 – $890,000)
Townhouse
North Arlington: $723,819 in 42 days (Range: $365,000 – $1,128,500)
South Arlington: $381,468 in 25 days (Range: $175,000 – $760,000)
1 Bedroom Condos
North Arlington: $320,127 in 39 days (Range: $190,800 – $428,000)
South Arlington: $217,121 in 71 days (Range: $78,000 – $325,000)
1 Bedroom + Den Condos
North Arlington: $410,038 in 56 days (Range: $303,900 – $516,500)
South Arlington: $264,423 in 39 days (Range: $120,045 – $419,250)
2 Bedroom Condos
North Arlington: $537,430 in 45 days (Range: $234,305 – $971,485)
South Arlington: $370,043 in 108 days (Range: $274,900 – $505,000)
Again, these are all averages – they don’t account for age, upgrade, size, location, etc etc. For a more accurate depiction of your property value, find out what your Arlington home is worth!
Did you know that there are “seasons” to the real estate market? We have cycles, just like teachers have summer vacations, coaches have seasons, and CPAs have tax crunch! Real estate activity goes up and down throughout the year with weather, holidays, school, job transfers, and so many other factors.
Check out this chart from MRIS for pending home sales by month from 2005 – present
You can see the peak real estate season is the spring – April, May & June. Activity usually begins to die shortly after Memorial Day and doesn’t pick up up again until Labor Day weekend in September. We see another spike in activity in September & October and then things slow down again as we get into Thanksgiving and the Winter Holidays.
What this means to you:
Buyers looking at properties during the summer are usually more motivated to buy something due to impending deadlines – beginning of school, job transfer, college graduation, etc. For sellers, this means fewer competitors since fewer new properties appear for sale.
If you’re thinking about selling, let’s talk now before we get into the middle of Summer! Find out what your home is worth.
If you’re thinking of buying, search homes for sale in Arlington or other parts of Virginia, D.C., and Maryland!
I get a lot of email from people that say “I found this property for sale…what do you think of the asking price?” Well, since I spend my day looking at everything on the market – both active, pending and sold – I have a sense of the price range for certain properties, and where things should fall. That being said, it’s nearly impossible to put an exact price on a property without seeing it first. So with that, here’s what I use to determine market value of a property for sale:
1. Standard Specs – bedrooms & bathrooms
2. Square Footage
3. Lot Square Footage (if the property is not a condo)
4. Type of Property (comparing a bungalow to a colonial is a no-no to me)
5. Comparable sales as a benchmark using the specs above
6. Upgrades/Condition
7. Age
8. Intangibles/Extras (ex. extra parking spot, balcony, gold painted walls – kidding)
There’s a lot that goes into figuring out pricing of a property. There’s no rule of thumb that says your initial offer must be 5-10% under list or 100% of list – each property is different, so the approach will be determined by price and place. I do a complete market analysis on each property before we submit an offer, just to make sure we’re accurate.
If you’re interested in finding out what your home is worth, please submit an information form!
I got an email from a woman from HGTV Headquarters about their show, My First Sale, about homeowners who go through the sale process for the first time.
If you’re thinking of selling in Arlington or Washington, D.C. please call me! Let’s apply to be on the show together as we get your home ready to be on the market to be sold!
Email me at Laura@TheLJRGroup.com or call me 703.283.6120
There’s a lot of focus on a buyer’s closing costs, but not much discussion on how much it costs to actually sell a house. Well, let’s focus on the seller’s view of the transaction for a moment. While I won’t (read: can’t) get into a specific dollar or % amount, we can talk in guestimations. So let’s take a high level view of the transaction:
- If you own a condo or property located with a Homeowners Association, you’ll have to incur the cost of ordering HOA Documents for the buyer to review. This will usually cost a few hundred dollars – the lowest i’ve seen is $250, but it’ll be determined by your management company.
- If the buyer has a VA loan (loans for active military and veterans), the seller is responsible for the Termite inspection and septic (if appl.). We don’t see too many septic systems in Arlington, but they’re more common out in Great Falls, Oakton, etc.
- If the buyer is doing a VA or FHA loan, there are certain fees they’re not allowed to pay, called “non-allowables” (clever, no?). The responsibility then falls on the seller to pay them…however, really in Virginia that only means the “Tax Service Fee” which is generally less than $100.
- If you have a deed of trust, you’ll have a payoff cost for the attorney to mail the remaining amount to your lender (and if you have a 2nd mortgage, you’ll have a 2nd payoff cost.)
- Attorney’s fees for preparation of the deed and documents.
- Arlington County Grantors Tax = 0.1% of the Sales Price (ex. $420,000 sales price will cost you $420 to sell it).
- Realtor Commission at x% (sellers pay both agents a % of the contract price).
- If anything comes up on the home inspection or appraisal as required repairs, you’ll have to incur the cost to fix these items.
- If anything comes up on the home inspection as negotiable items of repairs, and you elect to repairs them, you’ll have to incur these costs also.
I know this list looks long and scary, but it’s actually about 1% in addition to your commission %, plus any repairs from the home inspection list. If your house has been well kept, these costs should be minimal!
If you’re thinking of selling, find out what your home is worth.
Much like the surrounding areas of the D.C. Metro area, The District is at very low inventory levels too. So low in fact, that 52% of the condo/coop inventory in March sold in the first 30 days; for rowhouses/single family homes – it was at 42%.
Condo/Coop Inventory is down 16% from this time in 2009, but it’s the highest level since last August. Part of this comes from the fact that sales are up 27.5% from 2009, and average sale price is higher than 2006 and 2007, but only a smudge lower than 2009.
Rowhomes and Single Family properties have seen inventory levels fall by 31% since 2009. The number of units that traded hands last month is up 39.2% from 2009, probably because average sale price is at the lowest it’s been in the last 5 years.
Data provided courtesy of the Greater Capital Area Association of Realtors(R).
In Arlington…sort of. By definition:
Buyers Market is > 6 months of inventory
Balanced Market is = 6 months of inventory
Sellers Market is is <6 months of inventory
Based on February’s sales, Arlington County is currently at about 8 months of inventory. However, Northern Virginia as a whole is at 6 months of inventory.
I have to tell you, i’m very surprised at this number. It definitely does NOT feel like a buyers market in Arlington right now. In February, 47% sold within the first 30 days, 64% sold within the first 60 days, and 15% of all of the February sales sold at or ABOVE list price.
Taking a step back, let’s look at the market above $1M. Only 4 properties in February sold above $1M, and currently there are 133 active/pending properties in this price range. At that rate, it would take 3 YEARS to sell through all of the current inventory. That’s without a doubt a buyers market. Now taking that market out of the inventory calculations brings up down to about 28 weeks, or 7 months, of inventory.
I’m seeing more properties with multiple offers and contract deadlines. We’re seeing more people wave contingencies, yes, if you can believe it, it’s actually happening.
Based on recent sales, observations on the market, etc. it’s hard to really say it’s a buyers market. There really is no way to say you can assume an automatic X% price reduction on the current list price. It’s just not happening in Arlington. Now don’t let me burst your bubble, of course there are things that are overpriced or have been sitting for a while, or that you’re the only one bidding on…those you can try to negotiate.
