DC Real Estate Market Update January 2014

Posted by Abbott Klar Real Estate on Monday, February 17th, 2014 at 9:04am

 

 Washington Real Estate Market update for January 2014.


If January is any indication of market direction for the Washington DC Real Estate market, then we are in for another very competitive year, with low inventory of homes for sale, high competition by buyers and increasing prices.  Let's take an in-depth look at the numbers from Rbi:
January 2014 real estate summary from Rbi

Every data point of comparison did better year over year. Median Sold Price is up by 11.64%, Number of closed sales are up by 6.94%, Avergage Sold price is up by 10.05% and days on market is down by 18.46%.  The Washington DC real estate market continues to show strengh and price appreciation.   This is very much a sellers market with properly presented and priced properties generating multiple offers with escalation clauses and going under contract in record time.

What to do?

Sellers:  What are you waiting for?  This is one of the best markets ever to sell your house.  Let's get going!  To sell your house in this market  for the most money you need to:
1) Prepare your house for sale. De-clutter, de-personalize and stage the house for sale.  Get rid of half your stuff, really!  Go through the house and sell, donate or put in storage half of your stuff.  Then go back and get rid of even more stuff.  Nothing on any flat surface, organize those bookshelves, clear out the closets and clean, clean, clean.  Wile you're at it, take down all those cute pictures of you, your kids/dogs..  you want buyers to see themselves in the house, having your pictures up everywhere makes it hard for buyers to connect with the house. And finally let's tak about staging:  This is a must do!  Staged houses are just that... staged.  They are designed to highlight and showcase the best parts of your home while leaving plenty of space for the buyer to fill in their personal style.  Let the experts do their magic. Staged houses sell for more money.  And finally, now is the time to finish that 'honey-do list' of repairs that you have...  Go through the house and repair anything that needs repair. It is often much cheaper to repair the items before you put your house on the market as buyer will often discount a house price by much more than the cost of the repairs.
Remember, the way you sell your house is not the way you live in your house. You are trying to create enough space and clarity for the buyer to imagine themselves living in your home.  They can't do it with all your stuff everywhere.  So get to clearing it all out.
2) Hire a local Realtor.  Of course we are goind to say that...  What do you expect?!  We are Realtors and we are experts at this and more to the point, you will net more money by using the expertise of a local realtor than if you sell it on your own.
3) Price your house correctly.  This is where your local, experienced Realtor comes in.  Your house should be priced for what it is, not for what you put in to it, not for how much you want/need out of it, not for how much the new house will cost.  Look at the comps (comparable houses sold recently) with your Realtor and, together, come up with the price that will attract the most amount of interest from the greatest number of buyers.  Be very careful of overpricing.  Even in this market, buyers are more likely to offer more on an under priced house, than to even make an offer on an over priced house.  Over priced houses languish on the market and end up, ultimately,  selling for less than properly priced houses. 

Buyers:
1) Get pre-approved for a loan by a local lender.  In this market you will need to pre prepared and act fast.  This means getting pre-approved for a loan before you begin your house search.  This not only helps guide your search as far as price range, it also assures you that once you find your dream house you will be able to submit a strong offer with financing already in place.
2) Narrow down your 'wants and needs list'.  Beyond price, what is most important to you in your new house? Proximity to Metro? Yard? Parking? Number of bedrooms? Number of bathrooms? Awesome kitchen?  Are you willing to do a little work? Flexibility is key.
3) Hire a local experienced Realtor as your buyer agent- in most cases this does not cost you any money, (some have small admin fees), as the comission is paid by the seller.  That's right!  The seller pays the comission buy the buyer agent works for you!  Sounds weird but it's true.  A knowledgable local buyer agent can help you navigate the DC real estate market and assist you in writing the best offer at the best terms, to you the buyer, that is most likely to get you the house.  Don't skip out on this step.  If you call the listing agent you are working with the agent that is required to get the best deal for the seller.  Don't do that.

Give us a call today (202-505-5409).  We are the local experts.
We here at the Abbott Klar Real Estate Group are an experienced, full-service real estate team that specializes in the diverse neighborhoods of Washington DC. We offer an easygoing, no-pressure approach to Real Estate. Our mission is to listen, really listen to your needs, and connect you with a real estate investment that will improve your financial picture.

Give us a call.  We can help.

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