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What can I expect to pay for a home in Northern Virginia?
By robertearl | August 21, 2007
I have to admit, this is a question that I get asked on almost a daily basis. What can I expect to pay for a home in Northern Virginia? - Or the other twist on the question, How much do you think the Seller will take if I make an offer?
Both are very valid questions. Everyone is looking to make a deal and get the best value for their hard earned dollars. Whether you are a relocation buyer or are looking to move up or downsize, these questions are relevant. Let’s look at the two questions, based upon the facts and figures that I gathered during my August 2007, Northern Virginia Real Estate Report.
Currently there are 12,559 active and available properties listed for sale in Northern Virginia.  Our sales report includes residential properties, Single Family Homes, Townhouses and Condos in Fairfax, Loudoun & Arlington Counties along with Alexandria City, Falls Church City & Fairfax City. Over the past 90 days, properties have sold on average for $545,315.29. Does this mean that every property in Northern Virginia is priced for over half a million dollars? NO. There are plenty of affordable homes in Northern Virginia. But on average the amount has been $545,315.29.
Here is the first disconnect between Sellers and Buyers. Over the past 90 days the buyers have been willing to pay around $545,000. The 12,559 properties currently active on the market have an average list price of $626,450.25, over $81,000 more than what buyers have been willing to pay.
Next number to look at. The properties that sold for $545,315.29 were listed are $564,343.78 at the time that they went under contract.  When you take into consideration the concessions that sellers have been giving off of the price and the amount of closing cost, properties have been selling for an average of 96.63% of the listing price. Compare this number to January 2006 when this average was 98.2%.
Sellers are willing to work with buyers, within a certain window. When sellers list their home they have a expectation of the amount that they wish to get for the home. Even in todays market, if they can get the the range of asking price to a range of 5-6% below the current asking price when all is said and done, sellers are willing to let the property sit and wait for the next offer to come along. Right or Wrong, this is the market that we find ourselves in.
Topics: Northern Virginia Real Estate |