I recently posted a blog that now is a good time to buy. Did you know that it’s also a good time to sell? The two are definitely not mutually exclusive, especially in the DC Metro Area’s unique market.
First, let’s look at why now is a good time to sell apart from it being a good time to buy. DC’s market is quite different from anywhere else in the country. The area seems to be recession proof, thanks in large part to the federal government. Many areas of the country are seeing major declines in population, and subsequently many homes are foreclosed on, sold for less than they were purchased for, or can’t find a buyer at all. Our area, however, is not only seeing existing homes sell quickly, but we are seeing new construction everywhere. Areas as far north of the city as Clarksburg, MD, have seen drastic changes in its landscape in the last few years. It went from an area that was considered too far removed from the city to be a viable option for many commuters, to being considered one of the most up and coming neighborhoods in the area. New construction is in high demand everywhere, but space is running out. Builders are finding that in order to get their homes up, they need to act quickly and have an attractive product to make people want to move further outside of the city.
So, what does that mean for you, if you’re looking to sell your home? First, if you’re trying to sell your home that is more than 10 years old, there’s definitely a huge market for that. The character and charm that come with an older home are something to be coveted. There are a large number of people in the area who will pay extra to have a home in a neighborhood that is not new. They like the established feel that they’re buying into. Chances are, too, that if your home is a little older, it might have a little more property to go along with it. Many builders try to optimize profits by building as many homes as they can on as little land as possible, meaning condos, town homes, and single family homes with little to no yard are popping up everywhere. Your home is likely in high demand.
On the other hand, if you’re looking to sell your home that you bought as new construction just a couple years ago, you might be surprised to find out that there’s a high demand for your home too. I live in a community that is just over two years old. Construction is still in full swing on many of the rows of homes. However, sale signs are already popping up in the community. And they don’t stay on the market long. To buy brand new in the community, even if there weren’t a wait list, means months of waiting for construction to be completed. Moving into an existing home, on the other hand, means that the buyer is likely to be able to move in immediately, and the house will still have that “new home smell,” so to speak. It has all the upside to buying new construction, without the downside of having to wait. But for you, the seller, it means that your home has likely appreciated quite a bit in just the short time that you’ve owned it. As phases are completed and new phases started in new neighborhoods, prices of the homes tend to go up quite a bit. A home built in phase one might be identical to a home built in phase three, but if you got in during phase one, you probably paid quite a bit less than the people in phase three are paying. As a seller, if these phases are still going on or have even been completed, the value of your home most likely hasn’t stalled. It’s probable that your home has appreciated, and you’ll be able to sell your home for the phase three price, though you bought it for the phase one price.
A good time to sell and a good time to buy are definitely not mutually exclusive. When the market is as steady as ours is in the DC Metro Area, we have a great opportunity to make our money work a little bit harder for us. Getting a good deal when you’re buying around here doesn’t necessarily mean that the seller is getting the short end of the stick. Likely the seller is making money on the transaction, and is also getting a good deal on his next purchase. It’s more of a trickle-up effect rather than a trickle-down effect.
We definitely have very unique prospects in this area to make great real estate investments. Talk to your Hagan agent about how you can take advantage of these opportunities.