August, 2009
Over the past week, we have encountered a couple of issues that I wanted to clarify for people who are selling their home in the Fredericksburg real estate market. I met a couple who wanted to sell a home as part of an estate that they had inherited. The did some work to the home prior to deciding to place it on the market. However, they wanted to sell the home “as-is,” so that they would not be “nickeled and dimed” over the home inspection.
What they didn’t understand is that generally speaking, even though the buyer agrees to the “as-is” terms, if the buyer is securing an FHA loan or a VA loan, there still may be things the seller has to repair or replace… if they want the transaction to proceed.
When an FHA loan or VA loan is being secured, the buyer’s lender will order an appraisal. The appraisal must be done in compliance with FHA/VA guidelines. If there are issues with the home that will not “pass” the appraisal standards, the underwriter will require that these issues be resolved by the seller BEFORE the loan process can continue. Even though the home is being sold “as-is.”
If the buyer is using a conventional loan program, SOME issues that bring an FHA/VA loan to a halt, may be worked around… but not all of them. The only way to avoid any lender imposed conditions completely is to sell the home to a cash buyer. But, in the Fredericksburg real estate market, cash buyers are fairly few and far between. This is especially true once the price point rises bove $150,000.
So, the point sellers should take away from this, is when you are selling your home, the type of financing the buyer is using should be an important part of your consideration in accepting an offer.
Share on Facebook
Category : Blog
We have been selected to market and sell a charming Cape Cod in the Fredericksburg real estate market, located at 4517 Brandon Lane. Take a look at the listing below. If you know of someone who would be interested in this property, please share it with them.
Share on Facebook
Category : Blog
The traditional method of calculating the absorption rate, shows that there is 8.89 months worth of inventory in Spotsylvania County. However, as I mentioned in a previous article, you really can’t use the traditional formula for calculating inventory in the Fredericksburg real estate market right now. That is because many, many homes that are under contract do not close in the standard 30-45 days because they are short sales.
So, the real answer to what the inventory is right now, revolves around a formula involving homes that are under contract and no longer available, and homes that have sold in the last 30 days. The TRUE answer to the inventory question is 2.14 months. That means that the current inventory, and the current rate of sale and contract would deplete in 2.14 months if no more homes came on the market. That means homes are moving quickly!!!
So, again for those who want to capitalize on the $8,000 tax credit, by buying a home in the Fredericksburg real estate market, they need to act pretty quickly.
Share on Facebook
Category : Blog
This summer has been very interesting the Fredericksburg real estate market. The market has found itself inundated with a large chunk of homebuyers, looking for great deals on a home for sale in Fredericksburg or the surrounding area. By and large, the common denominator among most buyers is they are looking to take advantage of the $8,000 tax credit.
While there is a bunch of material available on the $8,000 tax credit, short sales, foreclosures, and more, I still find that occasionally buyers are misinformed. So, when I spoke to a buyer today who didn’t know the true end date of the tax credit, I decided to remind my readers of the fact in this matter. The $8,000 tax credit is NOT for the entire calendar year of 2009! It is for homes purchased between January 1, 2009 and December 1, 2009… meaning that you must close/settle the transaction on your home purchase by November 30th, 2009 to qualify. Let me make that clear, you must SETTLE the transaction by November 30, 2009 to qualify.
So, here is the reality of the situation. If you are considering purchasing a short sale property that takes 3-4 months to close (on average, sometimes longer) you are very nearly out of time… and actually may be out of time to use the tax credit.
If you are considering purchasing a regular sale, or a foreclosure, you still have some time. If you put a home under contract today, you should close between mid September and the End of September. So, there is about two months lead time on properties that are not short sales. But that isn’t much time, and the inventory is shrinking, so get out there and find a home to make sure you don’t miss this opportunity in a great Fredericksburg real estate market.
Share on Facebook
Category : Blog