With shrinking inventories and more competition, buyers are finding they have less negotiating power in today’s market. CNNMoney recently highlighted some of the following tips to help home buyers be more successful in their purchases this spring:
1. Lowball offers are a waste of time: “The days when you could scoop up a house for 20 percent less than the list price are long gone,” the article notes. Homes are selling much closer to their asking price nowadays, surveys show. Michael Murphree, a real estate professional in Birmingham, Ala., says he advises his clients that if homes are selling below the list price in an area but are still being sold in less than two months to make an offer that is no more than 2 to 3 percent below the asking price. If homes are selling above the listing price, Murphree advises clients to make their first offer at the full asking price.
2. How to win a bidding war: To do that, agents say come with a higher price and fewer contingencies, and be flexible with when you can move in. In some transactions, the sellers could be left trying to find new housing for themselves, so some real estate professionals suggest leaving the closing date blank on the contract and allow the seller to fill it in, or be willing to negotiate a leaseback if the seller needs more time to vacate.
3. Shop around for financing: Credit unions and small banks tend to offer the lowest rates and may even be less strict about their underwriting, Guy Cecala, publisher of Inside Mortgage Finance, told CNNMoney. Cecala recommends getting a good-faith estimate from one lender and then showing it to other lenders to see if they can beat it.
Source: “Housing Is Back! Best Moves for Home Buyers,” CNNMoney (April 8, 2013)
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REDUCED: 7202 Churchill Rd, McLean
Open House, Sunday, 1-4 BIG PRICE DROP! 7202 CHURCHILL ROADMcLean, VA 221016 Bedrooms5.5 Bathrooms6,752 SF $1,695,000
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Good Shepherd Housing and Family Services
Established in 1974 with a mission to reduce homelessness, increase community support and promote self sufficiency, the Good Shepherd Housing and Family Services is operated by a multi-denominational board of directors and staff managing over 70 housing units. Good Shepherd Housing and Family Services is located in the Mount Zephyr Business Center at 8305 Richmond…
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An increasing number of baby boomers are reportedly leaving their big homes in the suburbs and heading to urban areas for retirement, drawn by walkability, proximity to public transportation, diversity, and being closer to their children.
"[Boomers] want to buy something that's secure, and it's been pretty well demonstrated that suburban housing is not as secure an asset as anyone thought it was or that it used to be," McClain said.
Developers are taking note of the trend and beefing up construction in urban centers. Condos and apartments near downtown areas are popping up to accommodate more baby boomers.
The nation’s largest home builders are still investing in active-adult communities in the suburbs but confidence in the sector has been recovering at a much slower rate than the overall housing market, according to the National Association of Home Builders.
"The idea of living out in the suburbs, just with older people, has really disappeared," McClain says.
Source: “Boomers to Blame for Rising Urban Home Prices,” CNBC (April 13, 2013)
Researchers say more than 20 million housing units have a lead-based paint hazard, while over 6.8 million homes have radon exposures above the level considered safe.
The problem is that too many homeowners and renters are unaware of the link between their dwellings and their health. Radon exposure, for instance, has no immediate symptoms; and carbon monoxide poisoning can initially present flu-like symptoms. Furthermore, exposure to some toxins may be confused with seasonal allergies.
Researchers assert that a reduction in illness and accidents relies heavily on consumers being vigilant about the dangers in their housing. Nancy Harvey Steorts, a Northern Virginia real estate agent and former chair of the U.S. Consumer Product Safety Commission, remarks, "People spend more time looking at the kitchen countertops than they do at issues that can cause serious health problems. There are so many elements to having a home that's truly safe."
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