If you’re navigating the sizzling Northern Virginia real estate market, my name is Abraham Walker, your trusty Keller Williams Realty agent, and I’m here to help you conquer the home buying process. If you think paying the asking price is enough to secure a home, I hate to break it to you, but you’re going to need more firepower in your bidding arsenal.
About 60% of homes in Northern Virginia are selling above the asking price. Crazy, right? In Fairfax County, that number jumps to 64%. So, even though interest rates might seem high, if you want to compete, you’re going to have to sharpen your bidding skills and go all-in.
Now, before you panic, remember, knowledge is power. Let me share a couple of real-world stories with you. These tales of triumph and disappointment in the bidding battlefield will help you understand what it takes to win.
First up, a Lake Ridge buyer and a $545,000 single-family home. My client, knowing it was a competitive offer situation, stepped up with a $550,000 bid that could escalate to $565,000. However, another bidder, despite bidding the same $550,000, outbid my client by eliminating the home inspection contingency. A risky move, but it paid off for them.
Then there’s another buyer in Fort Hunt, Alexandria. They won not because of the offer price, but due to a substantial earnest money deposit. It’s laughable how list price used to be a strong offer. Now, it’s all about who’s willing to put more on the table.
So, what’s the secret sauce to winning the bid? It’s about understanding the different aspects of an offer and the risks associated with each. Let’s break it down.
The way you plan to finance your home plays a pivotal role. Cash is king, but if you’re like most folks who don’t have half a million to a couple of million in cash lying around, you’ll likely use a loan. Conventional loans compete with other conventional loans. VA loans fall under conventional loans due to a market stigma, and FHA financing, USDA financing, or first-time homebuyer programs usually don’t fare well. However, there’s a special place for physician loans.
Then comes the choice of your lender. Local is best because they can directly communicate with the listing agent, but national or online lenders might work too. But, stay away from lenders with a bad reputation. Trust me, you don’t want that headache.
Next, ensure you’re pre-approved and not just pre-qualified. Pre-qualification is a cursory glance, but pre-approval shows you mean business. Lastly, don’t overlook the size of your earnest money deposit. It can be a game-changer.
When it comes to home inspections, there are a few ways to play it. You can opt for no home inspection (though I wouldn’t recommend it), a walk-and-talk, or even a right to void. These factors all play a significant role in determining the strength of your offer.
If this all seems daunting, don’t worry. I’m here to help. Let’s make your home-buying journey as smooth as possible. Click on the Perfect Home Questionnaire and let’s schedule a Zoom consultation. We’ll talk through your questions and help you prepare for the exciting road ahead.