Question: How was the real estate market this fall?
Answer: After the new year, we will take a comprehensive look at market data for all of Alexandria including the City and Fairfax County neighborhoods. In the meantime, the following Market-in-a-Minute summary is for market conditions in Northern Virginia* for November 2022.
Question: What do I have to pay for when buying a home?
Answer: If you are considering purchasing your first home, you will likely be obtaining a mortgage to pay for it. This means that you are not going to be paying the full amount of the sales price at the time of closing. Instead, it will be financed over time. How much do you actually have to pay at closing though? And what other fees will you have to pay for?
Question: Who’s scurrying behind the real estate scene at holiday time?
Answer: Behind the scenes, the elves are at work…
This week’s Q&A column, sponsored and written by McEnearney Associates Realtors®, the leading real estate firm in Alexandria, is a bit of a departure from our usual format. To learn more about this article and relevant Alexandria market news, contact us at 703-549-9292. You may also submit your questions to McEnearney Associates via email for response in future columns.
Question: What terms are negotiable in a real estate sales contract?
Answer: I often write articles about current market conditions, because let’s face it, it’s been fun to write those articles for the past couple of years. My last article was about how the market is changing. That continues to be true. The market certainly changed — interest rates have more than doubled, and buyers are largely hibernating.
Question: Should I cancel a contract if the home inspection uncovers a long list of issues?
Answer: So, you fell for a house that you want to make your home and now you’re under contract! Ideally, one of the first things that your Realtor did was schedule a home inspection for you. The amazingly thorough home inspector has now come up with a list of 30 items that should be fixed or at least addressed in the home. Yikes! What to do now?
Question: With the rise in interest rates, has the inventory of homes for sale in Alexandria increased this fall?
Answer: As interest rates have risen, it’s not surprising that there has been a reduction in demand for homes compared to the overheated markets of 2020 and 2021. Even when we look back to 2019, which was considered a modest sellers’ market, the number of contracts is lower now.
Question: How can my local real estate agent help me move long distance?
Answer: Buying and selling a home can be exciting and stressful all at the same time. Locally, most people know at least one real estate agent; whether an agent they have used before or someone they are acquainted with. If not, recommendations from a friend, family member, or trusted advisor are a great place to start.
Question: Am I ready to turn the page?
Answer: Are you feeling either unsettled or bored?
Question: When is the best time to put my home on the market?
Answer: Many sellers I have spoken with lately are worried that they may have missed the best time to sell their home, with the recent increase in interest rates. However, according to the latest data, in our area we’re still in a modest sellers’ market for most property types. It’s definitely cooled off a little, but the market is still busy, and we expect early spring to be even busier.
Question: What are the benefits of paying points to buy down my interest rate?
Answer: Historically, and on average across the nation, most consumers have paid just under one discount point to obtain the rate for their mortgage. One point is 1% of the loan amount. In the Washington metropolitan area — where the average length of time a consumer owns their home is lower than the national average — buyers have typically paid zero discount points at closing for their mortgage interest rate.
