By: Joseph Hudson
I have seen more than a few emails come to my inbox with the words “price drop” and “price improvement” in the past few weeks. It seems that the days of a listing getting multiple offers are maybe not over, but less frequent. And while yes, the interest rates are higher right now, buyers are finding more opportunities to put an offer on a house with contingencies, at a lower than asking sales price, to ask for closing cost help, or help with buying down the interest rate. Some homes are even being marketed with these types of credits already being offered.
Why is this important? Well basically there is a rare opportunity here, because in “normal times” the DC area market is competitive. For the past 7 years I have been advising my buyer clients that in some situations they may have to compete to get the home, which means doing such things as not having a home inspection, doing the home inspection before putting in the offer, asking to do a home inspection for information purposes only, having to escalate up above the asking price for the house, or closing in a shorter period of time than the usual 30 days.
Now the buyer has a little more freedom to flex their muscles and ask the seller for credits, to fix things, to close on their timeline and maybe even to reduce the sales price of the house. This has not been the case for the majority of the last two years and even before that.
What is the takeaway here? Don’t let the news cycle, the attention-grabbing headlines and the general state of anxiety in the world let you miss a good opportunity to buy a home. Most jurisdictions in the DMV have some type of program for first time homebuyers and maybe even down payment assistance. Ask a knowledgeable Realtor and lender to guide you through this process and help you to stop paying rent and invest in yourself!
Where is the money? (According to Tina Del Casale from Sandy Spring Bank)
- MD – Maryland Mortgage Program, Housing Opportunities Commission (MoCo), Pathway to Purchase (PGCo)
- DC – DC Open Doors, HPAP, EAHP
- Virginia - VHDA
- Local banks have grant funds up to $10,000 as well.
Have questions about any of these program? Reach out to me today at email@example.com or 202.386.6330