It’s important to understand what to expect when entering the Northern Virginia Sellers’ Market. Having an idea of what is happening in the market can help you decide the best path for you. Also, it will help prevent major surprises and disappointments during the search for a new home.
WHAT IS THE NORTHERN VIRGINIA SELLERS MARKET?
The basic meaning of the Northern Virginia sellers’ market (or any sellers’ market) comes down to supply and demand. There is more demand for homes in the market than there are people selling them. This causes prices to rise and competitive battles for properties. In these markets, having a buyer’s agent is going to be a huge advantage to you. A professional can help you make stronger, more competitive offers.
WHAT SHOULD YOU EXPECT?
First, let’s look at the expectation that you are going to pay less than what is advertised. I remember when I bought my first house (prior to becoming an agent), I started looking at properties priced just above what we planned on spending. It was a sellers’ market at the time, but I was unaware of what this REALLY meant. I remember my agent explaining for the first time that it was highly unlikely I would be spending much less than what they were advertising and I probably needed to lower my expectations. Coming from the car sales world, I rolled my eyes and thought about getting a new agent (I didn’t). But seriously, this is exactly how many buyers feel when entering a sellers’ market. After all, it’s about getting the best deal right?
And yes, it is about getting the best deal. Unfortunately, when you are competing for a property, the sellers’ are the ones wh have the advantage in getting “the best deal”. Therefore, when it comes to setting your expectations, my advice is this: When you are touring and deciding on a property, you need to decide what YOU are willing to pay for it. What is it worth to YOU?
The fact is, it may be worth more to someone else. However, if it is THE house you want, it may be worth more to you. I don’t recommend offering more than you feel the house is worth to you. Even in tough situations, there are always things like temporary rentals that can get you through to the next house. Your home purchase is long-term and a decision you will be living with for an extended amount of time. You should love it overall.
MAKING A GOOD OFFER
A professional agent will have a lot of different ways you can “sweeten” your offer, possibly without even raising the price of the home. A lot of this can be done through the contingencies, which is something I go more into in this previous article. But basically, adding more earnest money, being prepared to make up for a low appraisal, or waiving certain contingencies are examples. Your agent should give you a list of comparable properties that have recently sold and are currently active. They should also go over all the details of your offer including what contingencies and concessions you are including and what they all mean. All of this information should guide YOU into the number you want to put out there.
In my personal experience from above, we were not comfortable putting in an offer above the asking on the first house we wanted. We lost that house. Luckily, we found one close-by. It wasn’t quite all of our dreams come true, but it worked. We got it for list and we even got some concessions. We ended up on the best pipe stem with the most amazing neighbors. I thank goodness everyday for the decision we made! Sometimes, trusting your gut is the best thing to do.
THE DISAPPOINTMENTS
When you are a buyer in a sellers’ market, you are likely to come across some disappointments. Houses that are gone before you can even put in an offer, putting in a strong offer and still not getting it accepted, not being able to find a house in your ideal location. These are just a few examples. My advice is to stay positive. Make sure your agent understands your timeline and your needs. Be prepared for what happens if you don’t find a home in that timeframe.
IS YOUR AGENT WORKING FOR YOU?
Make sure your agent is working for you!! Agents that can think outside of the box are the best for these markets. Maybe that means cold calling buyers in your ideal neighborhood to see if they are considering selling? Maybe they are great social media experts that can find properties before they hit the market? If you are in a struggle, don’t feel bad asking your agent what steps they are taking to find you a great home!
If you are ready to jump into the Northern Virginia sellers’ market and looking for an agent that will pull out every stop to find you a home, please CONTACT ME! You can also call or text me at 703-969-4677.
If you are outside of Virginia, I can still help! I have built a solid network of Realtors across the country and will be glad to refer you to the best one for your needs!
